I wondered if CW1 was the CEO of the Antigua Stanford bank. While he/she may not know what exactly was in Tier 3, he/she would probably have come closer than anyone but Davis and Stanford to knowing it was an empty bucket. It’s clear the CEO of the bank was involved in the prep (CEO may be the wrong exact title, but it’s that position) and should either be directly mentioned or be one of the three CWs. I think 1 is the best bet.

Cutting a deal when the 3 CWs cut a deal is the optimal time– gives the SEC and the prosecutors critical leverage against Holt. It’s possible that CW1 would have been in a position to know but not to be responsible for it– running an offshore sub might fit that, pointing again to my guess. I’ll have to re-read the complaint with that hypothesis in mind.

But that hypothesis fits your observations.

Questions not answered are – who is CW1? From the affidavit – at the mtg 2/4/09: CW2 and CW3 had not been aware that Tier 3 funds had been loaned to a shareholder.

Ok, so what the authorities leave out in that accusation is that CW1 obviously was aware. Why leave him out of that sentence? Since CW1 was not mentioned as having not been aware – he(she) was aware? That is certainly what is suggested.

What is CW1’s motive for his or her testimony to the authorities?

The Proskauer attorney, Sjoblom (in the timeline of the affidavit), conacted CW1 in an email on 1/24/09 setting forth the understanding of an agreement w/SEC earlier that day.

The affidavit doesn’t say Sjoblom emailed Holt that day. Doesn’t say Sjoblom emailed the affiliate Pres, doesn’t say he emailed Stanford, Davis, CW2, CW3.. just CW1.

Sjoblom’s 1/24/09 email to CW1 (and not all the major players) says that he “persuaded” the SEC in essence to go after Holt and affiliate pres.

On 2/4/09 we have another email between CW1 and attorney Sjoblom – this time from CW1 to Sjoblom.

Now at this point – since this is in the affidavit, and there’s clearly a point made showing a tighter written communication type relationship between CW1 and the attorney, (than is with the other CWs)…

- I can assume that
1) either the attorney is providing this info to the authorities or
2) CW1 is providing this info to the authorities or
3) Both CW1 and also Attorney Sjoblom are providing info the authorities or
4) Somebody else in the “room” provided info (Davis?)
5) Some combination of the above or
6) the authorities have wired somebody, tapped into computers or phones, or something to that effect or
7) Still, some combination of the above.

Since CW1 (and thing two and thing three and … you get the picture) is anonymous except that he/she clearly is “in on specific and targeted information” that the authorities seem to be using and not using against CW1 – CW1 seems pivotal in this investigation.

What is CW1’s motive again I ask.

CW1 appears to have worked closely with Sjoblom. The same Sjoblom who worked very hard to keep Stanford and Davis from having to go to the SEC. The same Sjoblom who went running from the case disavowing anything he might’ve done – of course he bailed after he got what he wanted out of Holt – her depo plated up hot for the SEC.

Sjoblom ran from the case and the people he persuaded to be questioned while not having persuaded Holt to hire her own representation along with whatever he was doing to “help” her.

Of course, it took Dan Cogdell, Holt’s criminal lawyer, about 2 seconds to size that situation up. Now there’s a lawyer doing his job.