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Same name? It's a shame

By Mark Bruno

March 22, 2009 6:01 am ET

When the news broke last month about the alleged $8 billion fraud at Stanford Financial Group, Helen Dietz — president and chief executive of "the other Stanford" — threw her advisory firm's client outreach into overdrive.

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Her firm, Mountain View, Calif.-based Stanford Investment Group Inc., had nothing to do with the massive scheme allegedly hatched by billionaire R. Allen Stanford and operated through various financial affiliates of his Houston-based company.

Even so, Ms. Dietz knew she had little time to waste making that clear to her clients.

"We went into crisis-communication mode," she said.

The firm immediately sent notes to all its clients — as well as its vendors and other financial institutions — clearly stating that Stanford Investment Group is an independently owned and operated investment adviser and broker-dealer, and has no ties to Mr. Stanford.

The firm's clients, for the most part, weren't very concerned, Ms. Dietz said.

"We had already stepped up our communications because of the market conditions and have been talking with clients on a very consistent basis," she said. "So they were aware that we have a very different business model, that we're totally transparent and that we had nothing to do with the other Stanford."

In fact, Ms. Dietz said that her firm received a number of client referrals during the week that the Securities and Exchange Commission charged Mr. Stanford with fraud.

"Our current clients were impressed with how proactively we were reaching out to them," she said.

Ms. Dietz added that the firm had considered changing its name but decided against it. It also changed its company colors recently, dropping cardinal red in favor of purple, to eliminate any confusion that it might be affiliated with Stanford University in Palo Alto, Calif.

"We weathered this storm quite well," Ms. Dietz said. "And the name will be stronger coming out of this."

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