stanfordgate

I'm going to go out on a limb here and state I think this Stanford Group fraud case is going to turn into something much bigger. Hidden at the end of the NY Times article is this strange, attributed paragraph.

The current S.E.C. charges stem from an inquiry opened in October 2006 after a routine exam of Stanford Group, according to Stephen J. Korotash, an associate regional director of enforcement with the agency’s Fort Worth office.

He said the S.E.C. “stood down” on its investigation at the time at the request of another federal agency, which he declined to name, but resumed the inquiry in December 2008.

[UPDATE]
Washington Post has an article that now has SEC spokesman John Nester saying that he could not confirm the SEC investigated Stanford in 10/06. Nester says the official didn't express himself clearly.