Sir Allen Stanford

Archived February 10, 2006

Stanford Financial Group will establish later this year a global foundation in Memphis to support its philanthropic works worldwide. The Stanford Global Foundation is the natural business development for a company that has an aggressive “community investment” program that gives tens of millions of dollars to charitable organizations annually, says James Davis, CFO of Stanford Financial Group. Stanford Financial Group has supported dozens of Memphis area charities since it opened here in 1999 and is replacing FedEx as title sponsor of the St. Jude Classic starting in 2007.

Having a “coordinated and controlled” approach to its charitable giving helps ensure the company is a “good steward of shareholders’ investment,” Davis says.

A native of Baldwyn, Miss., Davis has enjoyed being closer to his family roots. He says Stanford will continue to grow its Memphis operation as its importance for the company increases. Although the final touches were just put on the foundation’s budget, the company declines to put a dollar figure on the size of the foundation. They say the company has invested millions of dollars in Memphis alone.

The largest charitable foundation in Memphis, the Community Foundation of Greater Memphis, gave roughly $34 million to organizations in 2003, the latest year figures are available.

It was specifically because of the company’s charitable efforts that its chairman and founder, R. Allen Stanford, was named the recipient of the 2006 Excellence In Leadership Award by the Inter-American Economic Council. He was to be given the award in Washington Feb. 9 by President Bush.

The private Houston-based Stanford Financial Group is a global network of affiliated companies engaged in private and investment banking, insurance and real estate development in 94 countries. The company has more than two dozen offices and 92 business units around the world. It had in excess of $20 billion under management, according to a 2003 company-produced video.

Stanford employs 62 in its Memphis offices at the Crescent Center in East Memphis. The office houses the CFO, the chief investment officer, broker dealers and 32 research analysts.

Marketing and public relations veteran Suzanne Hamm joined Stanford in October as director of public and community relations for Stanford Group Company and will serve as executive of the foundation. A third generation Memphian, Hamm has worked in a variety of public relations and marketing roles the last two decades with Mid- South Concerts and public relations firm Coletta Brewer. In 2002, she and former Mid-South Concerts executive Susan Green started the entertainment and production company Archangel Entertainment.

Hamm worked as a consultant for Stanford before joining full-time. One of the foundation’s priorities, she says, will be to track the return on the company’s considerable charitable investments.

The company’s information technology department is developing proprietary software that will give Hamm and others quantifiable results. It is also a tangible expression of Stanford, she says. “Community investment is a good way to illustrate who and what we stand for,” Hamm says.

Since first sponsoring the Broadway Series at The Orpheum, Stanford has put money into numeous social service, arts and education projects in Memphis, including the National Civil Rights Museum, Make-A-Wish Foundation of the Mid-South and the Memphis Symphony.

Memphis and the Mid-South are benefiting, Hamm says, because the city is seen as the “launching pad” for the rest of the company’s expansion, which recently included Atlanta and Boca Raton, Fla.

Leo Arnoult, president of Arnoult & Associates, a Memphis consulting firm specializing in non-profits, has met with Hamm and says establishing the foundation makes financial sense and seems to mirror the company’s approach to fiscal responsibility.

“They’re taking a business approach to their philanthropy,” Arnoult says. “It’s not willy-nilly. This is a smart company that has a very analytical approach to everything they do.”

The company also seems to have a genuine heart for charitable giving, having put money into such organizations as Le Bonheur Children’s Medical Center and St. Jude Children’s Research Hospital, among others.

“You’re talking about a corporation that’s very values based,” Arnoult says.

Archived February 10, 2006

President George W. Bush and Mrs. Laura Bush ti Co-Chair Winter Gala

Washington, DC (February 10, 2006) - When asked what accomplishments he’s most proud of, the response from R. Allen Stanford may be surprising. Stanford, a Texas businessman who has built a global wealth management and financial services company with offices spanning the globe, might not discuss his latest business venture, but rather some of the lives that are being changed by the nonprofit organizations Stanford supports. He might talk about the homeless family who was given a new start in life through HERO House, a nonprofit organization Stanford helped establish that provides short-term residential services to low-income families throughout the Caribbean. He might talk about the increase in cure rates of childhood cancer for patients at St. Jude Children’s Research Hospital, which Stanford supports. Or he might talk about Stanford’s work to help local arts groups think and act more like successful Fortune 500 companies, rather than poor, struggling nonprofits.

One thing is sure, Stanford, both the man and his company, Stanford Financial Group, have a real and tangible commitment to giving back to the communities in which the company operates. And Stanford, the man, has approached his commitment to community investment with the same entrepreneurial spirit and intelligence that helped him build his company into the worldwide financial services organization it is today. It is for this reason that the Inter-American Economic Council (IAEC) has named Mr. Stanford the recipient of its 2006 Excellence in Leadership Award. Stanford was honored at the IAEC’s Fifth Annual Winter Gala, Co-Chaired by President George W. Bush and Mrs. Laura Bush, held last night at the Hall of the Americas, Organization of American States in Washington. Over 250 business and governmental leaders from across the U.S. and Latin America attended the event.

The Inter-American Economic Council (IAEC) is a nonprofit organization established in 1999 by leaders of the Organization of American States (OAS) and the private sector to provide senior government officials, leading business executives, and academic professionals the opportunity to engage in dialogue and strategic planning regarding current and future economic strategies in the Western Hemisphere. Each year, the IAEC honors a single individual for his or her commitment to excellence in leadership.

In announcing the council’s decision to honor Mr. Stanford, President of the IAEC Barry Featherman said, “We admire and acknowledge Allen’s entrepreneurial achievements and generosity in promoting and, indeed, expanding economic and social development opportunities in all of the communities in which Stanford operates. Allen is one of those rare leaders who puts his money where his mouth is. He sees a need within a community, and he works tirelessly to take on the social responsibility to fill that need,” said Featherman.

Houston-based Stanford Financial Group has, for many years, demonstrated a commitment to charitable giving, and Mr. Stanford and his team work consistently to forge unique partnerships and create innovative programs that help strengthen the communities in which his companies operate, including in North America, Latin America, Europe and the Caribbean.

Each year, the Stanford family of companies contributes millions of dollars to various community investment initiatives, with gifts ranging from small, locally based grants to sponsorships and underwritings of large, international programs. The company, as directed by Mr. Stanford, looks to develop start-up social responsibility programs as well as invest in innovative projects that truly make a difference in transforming lives and strengthening communities.

Because of its growing commitment to its community investment program, the company has announced plans to create a global nonprofit foundation in order to expand the effectiveness of its charitable giving. Specific plans for the foundation are expected to be announced later this year.

About Stanford Financial Group

Stanford Financial Group is a global network of financial and affiliated services rooted firmly on an enduring commitment to strengthen every community it serves. Stanford provides a wide range of coordinated wealth management and investment advisory services, trust administration, commercial management services including international private banking, investment banking, insurance and real estate development. The Stanford Financial Group of companies employs approximately 4,000 professionals who serve over 70,000 clients in 94 countries in North and South America, the Caribbean and Europe.

About the Council

The Inter-American Economic Council is one of the leading business and public policy organizations headquartered in Washington DC, USA, that focuses on promoting economic development in the nations of the Western Hemisphere with special emphasis on the Caribbean and Latin America. Founded in 1999 by leaders of the OAS and private sector, the IAEC has provided an ideal vehicle for co-operation to address critical economic and trade issues throughout the continent. Since its founding, the council has strived to make a fundamental difference in the lives of people throughout Latin America and the Caribbean.

Archived February 6, 2006

New York, New York (February 6, 2006) - Stanford Group Company is continuing the expansion of its Institutional Division with the addition of senior-level staff on both the East and West Coasts, new offices in four locations and a new state-of-the-art trading headquarters in Manhattan.

Stanford Group Company recently moved into its new 10,000-square-foot trading headquarters at 330 Madison, completing the move of the company’s trading desk from Dallas to New York. Coinciding with the move to its new Manhattan offices, Jonathan Burklund has joined the firm’s investment banking team as a managing director specializing in healthcare; and Michael Nelson has joined the company as senior vice president - telecommunications and wireless analyst. Burklund comes to Stanford Group Company with over 20 years experience in the financial services industry, 15 of which have been focused in the healthcare arena. In his work with firms including Lehman Brothers, Prudential Securities and Ladenburg Thalmann, Burklund has completed over 65 transactions, including private placements, initial and follow-on offerings, mergers and acquisitions and restructuring assignments.

Michael Nelson joined Stanford Group in November 2005 as senior vice president covering the telecommunications industry. Previously, he was a member of the Institutional Investor magazine-ranked telecommunications team at Citigroup Investment Research. Nelson joined Salomon Smith Barney’s telecommunications equity research group in 2002. He has over 17 years Wall Street experience, beginning his career in 1988 as a fixed income derivatives trader at Banque Indosuez.

Stanford is also expanding its Boston office, with the addition of Sales Traders Lou Orlando, Tom Wilkinson and Tom Daniels. The company will be moving into new and permanent offices at 75 Federal Street within the next several months, more than doubling its office space. All three of the new additions worked together at Wells Fargo before joining Stanford. Orlando, a graduate of Yale and 26-year veteran of the industry, served as managing director for both Wells Fargo, and prior to that, WR Hambrecht & Co. He has worked with Volpe Brown Whelan as vice president, and as senior sales trader at Deutsche Bank.

Wilkinson, who has more than 20 years experience, was formerly with Wells Fargo as a senior vice president, and prior to that at Vandham Securities as senior sales trader. Daniels, a graduate of Dartmouth was also with Wells Fargo and currently plays on Boston’s professional lacrosse team, the Boston Cannons.

In San Francisco, the company has grown its staff from one when the office opened last April to six senior sales traders and research sales professionals. Stanford is planning to move into new and expanded offices at 580 California St. by this July. Among the newly appointed staff are Nicholas Padula, senior vice president, Daniel Petek, senior vice president, and seasoned institutional research sales professionals, Gerald McGrath, Karl Spurzem and Dewey Thom.

Padula was previously with JMP Securities as managing director and sales trader, and Schwab Capital Markets where he served as manager of the West

Coast sales trading desk. In his 25 years experience, Padula has managed account coverage in the Northwest, Denver, LA and New York in addition to the West Coast accounts he now manages.

Petek comes to Stanford with over ten years experience, including most recently with Bear Stearns and, before that, Lehman Brothers as a sales trader. McGrath, who has more than 30 years experience in institutional research sales, was previously with Leerink, Swann & Co. where he was managing director, Charles Schwab Capital Markets and Stanford Washington Research Group, where he handled research sales for major West Coast accounts.

Spurzem comes to Stanford with more than 15 years experience with firms including Morgan Stanley, UBS Asset Management, Charles Schwab Capital Markets and Stanford Washington Research Group, where he served as director of institutional sales.

Thom joined the company in 2004 as senior vice president in its New York office and moved to San Francisco in 2005 to open the West Coast office. He has been in the brokerage industry since 1992 and, before joining Stanford, was with Brean Murray & Co. in New York, a boutique investment and merchant banking firm, as senior vice president of institutional sales and branch office manager.

The company has also expanded its presence in Boca Raton by more than doubling its former office space and adding Biren Amin, who has joined the company as senior vice president for biotechnology equity research. Prior to joining Stanford Amin was managing director of the biotechnology and healthcare sector for the Avalon Research Group. Before Avalon, he supported coverage of the large-cap pharmaceutical sector at Prudential Equity Group and worked in the competitive intelligence group at Aventis Pharmaceuticals (now Sanofi-Aventis).

According to Rocky Stein, managing director of Stanford Group Company’s Institutional Division, the aggressive hiring of seasoned, high-level executives and the company’s move into new offices on both coasts and in Florida is evidence of Stanford’s commitment to build a nationwide, full-service wealth management and financial services company. “Stanford fills the niche between small and more locally based firms and large, bulge bracket ones by offering the best that both of these models have to offer. We provide clients with the highly personalized service that a boutique firm offers, but with the powerful research and financial resources that a large, global company like Stanford Financial Group has to offer,” he said.

Stanford Group Company is an affiliate of Stanford Financial Group, an international network of financial service companies that employs approximately 4,000 professionals who serve over 70,000 clients in 94 countries in North and South America, the Caribbean and Europe.

Stein says Stanford’s commitment to hire the best and the brightest will not only allow the company to achieve its growth goals, but more importantly, to do so by continuing to provide a level of service and experience that Stanford demands. “These senior-level professionals bring a wealth of talent and experience to our company, and, as a result, they are ideally suited to enhance our capabilities. Their stellar reputations and long-standing relationships with the institutional market will serve Stanford well and positions us for the kind of growth we want to achieve,” he said.

In addition to opening new offices and hiring new staff, Stanford Group Company enhanced its research capabilities this past year when it acquired the prestigious Washington Research Group, the oldest and largest of the Washington-based institutional research organizations. The Stanford Washington Research Group has consistently been ranked as one of the top three macro economic Washington research companies by Institutional Investor magazine. Its group of more than 20 publishing policy analysts at the 30-year-old firm provides institutional investors with investment-related insights and traditional equity research across a broad range of growth sectors.

“With the addition of the Stanford Washington Research Group, we have a unique situation compared to some of our competitors. We are able to provide both policy research and fundamental research which gives us the opportunity to offer investors uncommon thought, proprietary analysis and information gathering, and a thematic approach to some of the more complex issues they face,” said Stein.

Stanford Group Company is the full-service, financial planning and wealth management affiliate of Stanford Financial Group, an international network of financial service companies rooted firmly on an enduring commitment to strengthen every community it serves. Stanford provides a wide range of coordinated wealth management, investment advisory services, trust administration and commercial management services including international private banking, investment banking, insurance and real estate development.