Betrayal, Cheating, Excesses Exposed in Fallen Billionnaire’s Trial
Betrayal, Cheating, Excesses Exposed in Fallen Billionnaire’s Trial
HOUSTON – Fallen financier Allen Stanford’s trial is unveiling the details of his alleged $7 billion fraudulent investment scheme. Stanford’s minions described how the attempts to hide
Allen Stanford's mug shot
the red flags surrounding the former Texas tycoon’s alleged scheme grew increasingly desperate as federal investigators closed in on him.
James M. Davis, who was Stanford’s former chief financial officer, told jurors that the enormous fraud could no longer be hidden. “The writing was on the wall,” Davis admitted. Davis has already plead guilty to fraud. His testimony against his former boss may help him get a reduced sentence.
Stanford’s alleged fraud, one of the largest ever in the United States, bilked hundreds of investors of billions of dollars, through the sale of certificates of deposits (“CDs”) issued by a Caribbean bank controlled by Stanford, according to the federal prosecutors. Stanford’s lawyers are laying the blame on Davis, claiming the former billionaire was brought down by his employee, who is the one behind the fraud.
Davis admitted to his role – “I’m a liar, I’m a fraudster” he said in court – but claims he was simply following Stanford’s orders. Davis also admitted to several affairs spanning across his marriages. Under intense questioning, Davis conceded he cheated on his first wife with the woman who eventually became his second wife. He admitted he then had an affair with another senior executive of Stanford, Laura Pendergest-Holt. Davis then went to say he cheated on his former mistress with two other women.
Nevertheless, Davis claims he is telling the truth about his former boss, Stanford. He told the jury how Stanford paid him as much as $2 million in annual salary and bonuses. The price paid by Stanford for Davis’ silence, according to the former executive, was $14 million over nearly two decades.
For Stanford, however, that money was a pittance. Stanford himself is accused of having taken as much as $5 billion in loans from his scheme.
Stanford’s trial continues. If found guilty, Stanford may spend the rest of his life behind bars.
