Fraud charges cost NZ Cricket 'cream'

Twenty20's billionaire kingpin arrested

Reuters

UNDER FIRE: Texas billionaire Allen Stanford, creator of the lucrative Stanford Super Series of Twenty20 cricket, has been arrested and charged with fraud.

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The Black Caps have lost the chance to take some "cream" in a cricket tournament in May with the arrest today of Texas billionaire Allen Stanford on major fraud charges.

He created the lucrative Stanford Super Series of Twenty20 cricket and with the England Cricket Board (ECB) had set up a quadrangular tournament in May involving New Zealand.

New Zealand Cricket CEO Justin Vaughan told Stuff.co.nz it was now extremely likely that the tournament would not happen.
NZC had not budgeted for the tournament although it would have been a beneficiary.

Vaughan said it would have been "cream on the top" with prize money available to the teams and players and participation fees.

"(It was) a reasonable chunk of money for what was a pretty small playing commitment," Vaughan said.

It was into the hundreds of thousands of pounds but not millions, he said.

Vaughan said he had not met Stanford but events today showed the need for care with dealing with the many financial offers involved in Twenty20 promotion.

"It opens the eyes to the fact that their needs to be very rigourous due diligence done on people looking to partner a national cricketing board," Vaughan said.

In a complaint filed in a Dallas federal court, the US Securities and Exchange Commission accused the cricket-loving Stanford and two other top executives at Stanford Financial Group of fraudulently selling $US16 billion ($NZ31.3b) in high-yield certificates of deposit.
 
About 15 federal agents, some wearing jackets identifying them as US marshals, entered the lobby of Stanford's office in the Houston Galleria area, a Reuters eyewitness said.

Last year Stanford's Super Series of Twenty20 cricket saw $US20m handed to the winners of a one-off game between England and the West Indies.
 
The English and West Indies cricket boards have immediately suspended their negotiations over a new sponsorship deal.

"The (ECB) and the West Indies Cricket Board (WICB) have suspended negotiations with Sir Allen Stanford and his financial corporation concerning a new sponsorship deal," the ECB said in a statement.

Stanford came to prominence in the cricket world following his private Twenty20 competition in the Caribbean and, in particular, the $US20 million game in November between England and his own team made up of West Indian players.

ECB chairman Giles Clarke said his organisation was now weighing up the possibility of utilising get-out clauses in its agreement with Stanford.

"Clearly that is a matter we would consider," he told reporters before suggesting that the proposed quadrangular Twenty20 series in England in May was now unlikely to happen.

"We will clearly consider that situation but we have suspended negotiations so there is a strong possibility it will not take place," he said.

Clarke said he understood that all monies due to have been paid out from the $US20m game had been distributed.

"All of the obligations with regard to the game that was played have been met and all the various people who were expected to do various things for that match have received their remuneration as far as we are aware," Clarke said.

Stanford's clients include many sports personalities. The 58-year-old Texan has close marketing ties with pro-golfers Vijay Singh and Camilo Villegas.

Another golfer, Henrik Stenson of Sweden, signed a multi-year endorsement deal in July, while English football star Michael Owen of Newcastle United signed last April.

-with Reuters

- © Fairfax NZ News