Soon-to-be ousted W Foundation member faces fraud charges Stanford Financial’s Columbus office is located on Bluecutt Road. Currently, the Houston, Texas-based company is under investigation by the Securities and Exchange Commission for allegedly conning investors out of billions of dollars Photo by: Joe Ray Roberson/Dispatch Staff
By Neal Wagner February 19, 2009
The Securities and Exchange Commission has levied charges against Stanford Financial Chief Information Officer Laura Pendergest-Holt, a sitting member of the Mississippi University for Women Foundation.
However, the president of the foundation said the organization has no financial ties to the company and describes Pendergest-Holt as a "very inactive member."
"The MUW Foundation has no exposure to Stanford Financial," said MUW Foundation President Dr. Gary Bouse.
Bouse also said Pendergest-Holt has not attended a meeting of the Foundation since February 2008. Bylaws of the organization say a member who misses three meetings in a row is off the board unless special consideration is made by the board chairman. Pendergest-Holt has missed the past two meetings and is not expected to attend next Thursday's gathering.
"We have both investment and finance committees that are separate from the board," said Bouse. "Laura isn't on either one."
The MUW Foundation board meets three times a year. The Foundation is privately incorporated and governed by a board of alumni, other university supporters and MUW President Dr. Claudia Limbert.
It's primary goal is to support the university in fundraising efforts, including managing alumni contributions.
Also being charged by the SEC are Stanford Financial owner R. Allen Stanford and chief financial officer James M. Davis.
Davis and Pendergest-Holt are originally from Baldwyn.
"As we allege in our complaint, Stanford and the close circle of family and friends with whom he runs his businesses perpetrated a massive fraud based on promises and fabricated historical return data to prey on investors," said Linda Chatman Thomsen, director of the SEC's Division of Enforcement.
The SEC contends the defendants led investors to believe certain risky CD purchases were safe and gave false information regarding the workings of the CDs. The scheme allegedly cost investors billions.
Mississippi Secretary of State Delbert Hosemann said Wednesday his office is subpoenaing information from the Houston, Texas-based financial company. The company has offices in Jackson, Columbus and Tupelo. Tuesday, U.S. marshals and SEC officers shut down the Tupelo office.
"If there are problems in Mississippi with Stanford, we are going to find out about it," said Hosemann. "By subpoenaing this information, we hope to find out if and how many Mississippians were affected by the products under investigation by the Securities and Exchange Commission."
"Because of the close ties two codefendants in the SEC investigation have to Mississippi, James M. Davis and Laura Pendergest-Holt, our office will closely examine the documents subpoenaed from Stanford Financial to determine the scope, if any, of the problem here in our state," said Hosemann.
The Stanford office in Columbus remained open this morning. Employees refused comment, saying they were barred by the SEC from any discussion on the matter.
Benedicta Arnold | 2/19/2009 11:21:00 PMmark as inappropriate Laura Pendergest-Holt is dealing with a world of personal and professional trouble. It is too bad she has to add being thrown to the sharks by the alma mater she served as a volunteer Board member for its Foundation. She has not been convicted of anything yet (or even missed three meetings in a row yet!) - except perhaps by Bouse, who apparently hasn't mastered the art of making appropriate and tactful comments when questioned on a sensitive subject. Shame on the MUW administration for one more hurtful stab at an alumna! And fingers crossed for Laura, that this is all a big mistake; certainly federal investigators have been wrong before.
journalismgrad | 2/20/2009 9:18:00 AMmark as inappropriate It appears MUW was once again using an alumnae when it was convenient, and turning their backs on her when it wasn't. She is innocent until proven guilty. Bouse should have immediately expressed his concern for the situation this alumnae found herself in, while also stating there were no Foundation ties to Stanford Financial. The several day's delay between the breaking of the story and Bouse's statement, fuels speculation and rumor. One more example of the Administration's lack of ability to administer.
Ms. Compliance | 2/20/2009 9:50:00 AMmark as inappropriate Benedicta Arnold, what world do you live in. Clearly you have never been in the corporate world. A corporate scam like this cannot be pulled off without the knowledge of those on the top. Oh my, that would include Ms. Pendergest-Holt. When employees questioned management about the investments, where the money was invested because clients were pleading to know, they were threaten with either resignation or be terminated.
Sadly, Ms. Pendergest-Holt was training the bankers on how to evade questions and be very vague on their answers. One individual was terminated for asking one to many questions.
But of course, she is just a victim, right? Not. I bet she is even saying sorry now. Con artists on say sorry once they have been caught, otherwise it would never come out of their mouths.
You poor sap, wake up and smell the coffee. I bet you would feel differently if you were one of those thousands that have lost their money. Of course, you would still say, oh, she did not to anything wrong. She is innocent. A person is never innocent when they are a party to a crime.
Fortunately, I am not that gullible. I have woked in the financial services world. I have seen too many scams, people walked out by US Marshalls, etc. So inately, I don't trust anyone in the financials services world with my world.
Unfortunately, the authorities are just skimming the surface. They are so many other Madooffs and Stanfords that will be coming out of the woodworks.
Benedicta Arnold | 2/20/2009 10:18:00 AMmark as inappropriate Ms. Compliance, you missed the point. I did not say Pendergest-Holt was a mere victim; although I did point out that she may not be guilty and certainly she has not yet been convicted of any wrongdoing.
My point was that the MUW Foundation should have been able to make a prompt statement that clarified the organization's situation relative to exposure without adding to the villification of an alumna and a volunteer Board member. "The MUW Foundation did not have funds on deposit with...We appreciate the contributions of Pendergest-Holt during her tenure on our Board... Our thoughts are with everyone impacted by this ..."
Unfortunately, your cynicism is understandable - there IS WAY TOO MUCH malfeasance in the corporate world, legal as well as illegal. Scams, gross mismanagement, corporate excess, golden parachutes...We are all paying for it one way or another.
plainsense | 2/26/2009 11:12:00 PMmark as inappropriate It sure looks like Pendergest was using MUW to bolster her credentials in furtherance of her apparent criminal activity. She should have immediately tendered her resignation due to the ongoing investigation, sparing the group from having to dump her. If she is guilty--and she is guilty simply by being chief investment officer and failing to precisely know the firm's holdings and failing to disclose a 1.6 bil loan to the CEO--let's hope she isn't allowed to sip tall drinks in her comfortable home like Mr. Madoff.
