MIAMI, Florida (CMC):

The Stanford Financial Group, whose principal Sir Allen Stanford has been accused of being at the centre of a massive investment fraud, laid off more than 170 workers in Florida.

The Florida State Department of Labour said most of the affected jobs were based in Miami, where 95 people were sent home from the firm's downtown office.

According to disclosures filed Monday, 46 employees were also sent home from offices in Boca Raton, and smaller numbers in Fort Lauderdale, Vero Beach, Longboat Key and Orlando. The labour department said the layoffs took effect last Friday.

The Securities and Exchange Commission (SEC), the United States financial regulator, filed a civil complaint against Sir Allen, two of his senior employees and some of his companies on February 17. The SEC said the executives perpetrated a US$8-billion investment swindle that involved providing misleading information about the safety of investments sold as certificates of deposit and promising unrealistically high rates. The firms' assets were frozen and a receiver was appointed.

The SEC alleged that Stanford also defrauded investors at his Antigua and Barbuda-based Stanford International Bank (SIB).

In subsequently issuing an amended civil complaint, the SEC said Sir Allen and Jim Davis, the firm's chief financial officer, "misappropriated at least US$1.6 billion of investor money through bogus personal loans to Stanford and 'invested' an undetermined amount of investor funds in speculative unprofitable private businesses controlled by Stanford".

Only Stanford's Chief Invest-ment Officer Laura Pendergest-Holt has faced criminal charges.

The Federal Bureau of Investigation (FBI) alleged that Pendergest-Holt obstructed a federal probe by misrepresenting her awareness of the nature of Stanford's investments.

The FBI also reportedly alleged that she omitted details about a meeting she had with Stanford executives in Miami during the week of February 2, in which she purportedly prepared what she would say in upcoming interviews with the SEC.

Stanford employs nearly 1,000 workers in Antigua and Barbuda at SIB, the Bank of Antigua (BOA), the Antigua Sun newspaper, and various other entities.

Eastern Caribbean financial regulators took over BOA to prevent a run on the financial institution.

The Antigua and Barbuda's government has seized 250 acres of property owned by Sir Allen, a move triggered by the civil action in the US.