Is the noose tightening?
James Davis, Allen Stanford’s number 2, sat down with FBI and SEC investigators yesterday, Davis’ lawyer, David Finn, told Bloomberg. Finn said earlier this week that Davis would fully cooperate with both investigations.
The SEC has filed a civil complaint against Stanford, Davis, and a third Stanford Financial Group executive, Laura Pendergest-Holt, alleging a “massive ongoing fraud”. Only Pendergest-Holt has thus far been criminally charged, in connection to giving false statements to investigators.
Finn reiterated that Davis - who last month took the fifth, refusing to cooperate with the investigation — had shifted his position. “Jim is fully and actively cooperating, and trying to get investors who lost their money some help,” Finn told Bloomberg. “He’s absolutely devastated, because he knows a lot of good people got hurt.”
Finn, who didn’t give details of what Davis told the Feds, even claimed that Davis was a”whistleblower,” saying Davis told regulators about the fraud after a meeting of Stanford execs in early February, to prepare for SEC questioning.
“[H]e was the one who blew the whistle and brought the house of cards down,” said Finn.
At the very least, it looks like Stanford and Davis, former college room-mates and previously, by all accounts, the closest of friends, may be on the outs. And given what Davis likely knows about the inner working of SFG, that can’t be good for Sir Allen.