The Securities and Exchange Commission filed a complaint today in a Dallas court against Stanford and three of his companies, alleging that about $US8 billion ($NZ15.83 billion) of so-called certificates of deposit were sold to investors by promising "improbable and unsubstantiated high interest rates".
Stanford, whose Houston office was raided today, funded a winners-take-all $US20 million Twenty20 match between England and a West Indies all-star team in Antigua in November, the first of five planned annual games worth a total of $US100m. The all-stars won.
"Following allegations made today ... the England and Wales Cricket Board and the West Indies Cricket Board have suspended negotiations with Sir Allen Stanford and his financial corporation concerning a new sponsorship deal," the ECB said in a statement.
If Stanford's funding for cricket ended, it would have a big impact on the game in the Caribbean and England.
Stanford was planning to provide financial backing to more Twenty20 competitions, including an annual tournament at Lord's starting in 2010 and the English Premier League starting the same year.
Stanford's Super Series competition in October also attracted headlines for the wrong reasons.
England's players complained about the stadium lighting, the slow playing surface and even the behaviour of Stanford. During a game, he was caught on camera with some of the players' wives and girlfriends sitting on his lap. He later apologised.
