Mexicans Yank Funds Out Of Local Stanford Unit

Stanford Fondos had 706.8 million pesos of its clients savings in funds as of Jan. 30.

Mexican investors have pulled out nearly 40 percent of the funds invested through a local unit of Stanford Financial Group, which was accused last week of a massive fraud, Mexican regulators said on Monday.

Clients have withdrawn 275.5 million pesos ($19 million) since Feb. 17 from Stanford Fondos, which is authorized only to distribute other companies' local mutual funds, the National Banking and Securities Commission (CNBV) said in a statement.

Stanford Fondos had 706.8 million pesos of its clients savings in funds as of Jan. 30.

"The reports that some people have not been able to withdraw their investments refer to those people who invested with Stanford Financial Group in Houston, Texas, and Stanford International Bank Ltd based in Antigua," the CNBV said.

The U.S. Securities and Exchange Commission charged Texas billionaire Allen Stanford and Stanford Financial Group with fraudulently selling $8 billion in certificates of deposit issued by Stanford International Bank of Antigua last week.

Stanford's Mexican unit remains open and is operating normally, the CNBV said, but regulators are looking into whether Stanford Fondos tried to sell unauthorized foreign securities to its Mexican clients.