Apparently, the Securities and Exchange Commission is investigating Stanley's employer, Standford Financial Group, for fraud. The SEC froze company assets to investigate international bank certificates of deposits sold by Stanford Financial Group that paid far more than typical rates of return on U.S. bank CDs. Civil charges against Stanford allege he lied about the safety of investments he sold as "certificates of deposit."
Stanley claims he is dumbfounded:
State Sen. Paul Stanley, R-Germantown, said he was amazed and dumbfounded when he got the call in Nashville from his assistant in Memphis on Tuesday morning that federal authorities had raided the Stanford Financial Group's Memphis office where he works as a wealth manager.
"It's unbelievable. I'm just dumbfounded," he told reporters in his legislative offices in Nashville. "I did not participate in any type of activity nor have any knowledge of it. If justice needs to be served, it needs to be served."
Stanley, first elected to the legislature in 2000, has worked at Stanford Financial Group for 3 1/2 years as an individual wealth management adviser and was in public finance before joining the firm.
Stanley said he has not been contacted by any investigators. "I have no knowledge of this. I don't believe any of my colleagues that were around me or that I worked with or that do what I do were involved in anything. We're wealth managers. You come in with your investments -- stocks, bonds, mutual funds -- and we help manage money for our clients."
The SEC has presented no evidence that Stanley is responsible for any of the malfeasance described in the charges.