Stanford Should Get 230-Year Term in Ponzi Scheme, U.S. Says

June 7, 2012

San Francisco Chronicle on June 6, 2012 released the following:

“Laurel Brubaker Calkins,

June 6 (Bloomberg) — Convicted Ponzi scheme operator R. Allen Stanford should be sentenced to the maximum allowable term of 230 years in prison, federal prosecutors argued in court papers.

Stanford, who the government said is seeking a sentence of “time served,” is to be sentenced next week in U.S. District Court in Houston.

“Robert Allen Stanford is a ruthless predator responsible for one of the most egregious frauds in history,” the Justice Department said in a 34-page filing. “Displaying an audacity that only further illustrates his depravity, Stanford seeks a sentence of time served, brazenly arguing that there are no losses” and rehashing arguments rejected by the jury that convicted him in March.

Stanford, 62, was found guilty of defrauding more than 20,000 investors through the sale of what the government called bogus certificates of deposit at his Antigua-based Stanford International Bank Ltd. A court-appointed receiver marshalling the ex-billionaire’s assets has located less than $500 million in cash and assets that can be used to repay investors.

Stanford’s own sentencing recommendation was filed under seal. Prosecutors said he asked U.S. District Judge David Hittner for leniency, in part because he is a first-time offender.

Stripped of Assets

Stanford also denied that investors suffered any losses while he was running Stanford Financial Group and “complains that he was stripped of all his assets,” by the government, prosecutors said.

The recommended 230 years is at the top of the range of sentences for Stanford’s crime under federal guidelines, the prosecutors said in the filing.

“Nothing speaks more eloquently of Stanford’s character than his sentencing arguments in this case,” the Justice Department lawyers wrote. “After everything that he has done to so many innocent victims, Stanford does not show a hint of remorse for his misconduct, only the same arrogant, narcissistic behavior that led to it.”

Stanford has been incarcerated as a flight risk since his indictment in June 2009. He was charged about three months after U.S. securities regulators seized his companies on suspicion they were a “massive” Ponzi scheme, in which late-arriving investors’ funds were used to pay earlier investors.

Stanford’s Sentence Request

Stanford’s lawyers have requested a prison sentence of 31 to 44 months, prosecutors said.

Robert A. Scardino, one of Stanford’s criminal-defense lawyers, said by phone that his side is “hoping for the best and preparing for the worst” at the June 14 sentencing. Scardino declined to comment further, citing a court order not to speak publicly about the case.

A Justice Department spokeswoman, Alisa Finelli, didn’t immediately reply to e-mail or voice messages seeking comment on the filing.

The case is U.S. v. Stanford, 4:09-cr-0342, U.S. District Court, Southern District of Texas (Houston).”

————————————————————–

Douglas McNabb – McNabb Associates, P.C.’s
Federal Criminal Defense Attorneys Videos:

Federal Crimes – Be Careful

Federal Crimes – Be Proactive

Federal Crimes – Federal Indictment

Federal Crimes – Appeal

————————————————————–

To find additional federal criminal news, please read Federal Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition Defense, OFAC SDN Sanctions Removal, International Criminal Court Defense, and US Seizure of Non-Resident, Foreign-Owned Assets. Because we have experience dealing with INTERPOL, our firm understands the inter-relationship that INTERPOL’s “Red Notice” brings to this equation.

The author of this blog is Douglas C. McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Defense witnesses say Stanford wasn’t hands-on boss

February 17, 2012

The Houston Chronicle on February 16, 2012 released the following:

“Defense witnesses portrayed R. Allen Stanford as distant from the day-to-day operation of his companies, as his lawyers laid a foundation Thursday for their contention that financial machinations by a star prosecution witness led to fraud charges against Stanford.

Joan Stack, who headed global human resources for Stanford’s companies in the final two years before U.S. regulators shut them down, characterized her boss as “disconnected” from much of the companies’ operations. She said he focused mostly on the Island Club, a resort for the wealthy he hoped to develop on Caribbean islands he owned.

She testified that government witness James Davis, Stanford’s former chief financial officer, worked out of an office in Tupelo, Miss. that Stanford set up to accommodate Davis, his longtime business associate and former college roommate.

Davis pleaded guilty to three felony counts and testified against Stanford during the government’s portion of the trial.

Stack described the Tupelo office as clubby, employing mostly relatives and friends of Davis or Laura Holt, former Stanford chief investment officer who is named in a separate indictment and will be tried later.

Stack said employees in Tupelo reported solely to Davis and Holt rather than to others in the company.

Kelly Bailey, a graphic designer, testified that Stanford told her to “work with Jim” on annual report numbers.

Bailey testified that Davis was “highly disrespectful” of Stanford and once mumbled under his breath “something to the effect of ‘he doesn’t know what he’s doing’” in reference to Stanford as they worked on financial reports.

She acknowledged under government cross-examination, however, that Stanford had the final say on annual reports.

Government witnesses testified earlier in the trial that they saw Stanford and Davis changing numbers on annual reports before sending them to printers, and Davis said they fabricated figures to make financial reports look more favorable.

Bailey said she also recalled last-minute changes on reports, but could not detail what they were.

Stanford is accused of running a $7 billion investor fraud through certificates of deposit issued by his Stanford International Bank in the Caribbean nation of Antigua.”

————————————————————–

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Stanford Seeks to Delay Trial After Defense Expert Witnesses Quit Over Pay

January 3, 2012

Bloomberg on January 2, 2012 released the following:

“By Laurel Brubaker Calkins

R. Allen Stanford, accused of running a $7 billion investment fraud, asked for a three-month delay in his trial set for Jan. 23 after his expert witnesses quit over not being paid, according to court filings.

Stanford’s experts haven’t been paid for four months, Ali Fazel, Stanford’s lead criminal-defense lawyer, said in court papers filed Dec. 30 in federal court in Houston. They quit last week after the U.S. Court of Appeals, which controls budgets for Stanford’s publicly funded defense, ruled that it will “modify and limit the expert budget moving forward” and withhold payments to them until after the trial, Fazel said.

Stanford, 61, has been in custody since he was indicted in June 2009 on charges of defrauding investors through bogus certificates of deposit at his Antigua-based Stanford International Bank.

Stanford was declared mentally fit for trial on Dec. 22, after completing eight months of rehabilitation at a federal prison hospital in Butner, North Carolina. U.S. District Judge David Hittner found the former financier had sufficiently recovered from head injuries suffered in a September 2009 jailhouse assault and an addiction to anxiety drugs prescribed by prison doctors following the attack.

Fazel said in the Dec. 30 filings that prosecutors don’t oppose a one-week delay in tomorrow’s deadline for filing expert reports in the case.

Assistant U.S. Attorney Gregg Costa told Hittner last month that the government doesn’t oppose a delay of six to eight weeks in Stanford’s trial to give him more time to review documents with his attorneys.

Laura Sweeney, a Justice Department spokeswoman, declined to comment today on the request for a three-month delay, citing a gag order issued by the judge.

The case is U.S. v. Stanford, 09-cr-00342, U.S. District Court, Southern District of Texas (Houston).”

————————————————————–

To find additional federal criminal news, please read Federal Crimes Watch Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.