Stanford Operation Was Ponzi Scheme From The Start, Says Number 2

Zachary Roth | August 28, 2009, 12:59PM

Yesterday, we got new details on Allen Stanford's alleged $8 billion fraud, with the release of the plea deal signed by the Texas banker's number 2 man.

Jim Davis, Stanford's college roommate and the CFO of the Stanford Financial Group, pleaded guilty to conspiracy, mail fraud and obstruction charges. He told prosecutors that the company was a sham from the start, using money from new investors to pay off old ones. Davis also described how for years he helped cover up the scheme, and helped bribe a top Antiguan regulator to keep the SEC off the scent.

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Topics: Allen Stanford, Jim Davis, Securities and Exchange Commission

Allen Stanford

Lawyer: Stanford Number 2 Helping To Probe Billionaire's Money Trail

Zachary Roth | April 6, 2009, 1:44PM

The walls around Allen Stanford appear to be closing in ever tighter.

David Finn, a lawyer for Jim Davis, the number 2 man at Stanford Financial, tells Bloomberg that Davis is helping investigators track Stanford's European assets, focusing on Swiss banks.

In addition to potentially helping to build a criminal case against Stanford, tracking the assets could help repay victims of Stanford's alleged fraud.