Texas billionaire R. Allen Stanford, whose sprawling banking empire collapsed this year, has been indicted for what prosecutors say is a $7 billion scheme to defraud investors. Justice Department officials planned to announce the charges against Stanford, who ran Stanford Financial Group, and six others at a news conference Friday.
Also indicted were three executives of the company and a former Antiguan bank regulator. The indictment charges Stanford and other executives at his firm ``would cause the movement of millions of dollars of fraudulently obtained investors' funds from and among bank accounts.' The firm would give money to some investors ``to perpetuate the false appearance that (Stanford's business) was financially sound,' according to the indictment.
The Securities and Exchange Commission has filed court papers charging that Stanford and top executives orchestrated a massive fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank. Stanford, in FBI custody after surrendering Thursday, was to appear in federal court in Richmond, Virginia, later Friday. He has denied the charges.
The others indicted Friday were Stanford executives Laura Pengergest-Holt, Gilberto Lopez and Mark Kuhrt. A separate indictment unsealed in Florida accuses a fourth Stanford worker, Bruce Perraud, of destroying records important to the investigation. Prosecutors charged Leroy King, the former chief executive officer of Antigua's Financial Services Regulatory Commission, with conspiracy to obstruct an SEC investigation. Criminal charges were filed against James Davis, chief financial officer for Stanford Financial Group.
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