Allen Stanford, a former billionaire from Texas, was indicted by prosecutors for investment fraud two and a half years ago. He is supposed to appear for trial at the federal court house in Houston on the 23rd of January, 2012.
Before he was indicted in 2009, Stanford appeared in court with a lawyer and agreed to surrender. At that time, US marshals refused to arrest the founder of the Stanford Group Co., who was worth approximately $2.2 billion (by Forbes). The group was comprised of a number of companies that offered financial services under the control of Stanford.
Accusation: Billions of Dollars Skimmed
Stanford has been accused of skimming over a billion dollars in deposits made by investors. Prosecutors stated that he used the money to pay for his lavish lifestyle which included a private island in the Caribbean, cricket teams, yachts and several jets. Stanford was allegedly able to do this by misinforming depositors that their money was secure in liquid, conservative investments.
No Intention to Defraud
Attorneys from Houston, who are the lead defense counsel in Stanford's case, have stated that they will use thousands of business and bank records that will show that the former billionaire did not have the intention of defrauding people.
Weeks before Stanford was charged, he claimed that he was not a swindler. He even made a promise that he would clear the charges against his name. Stanford was also sure that he will reclaim assets which securities regulators had seized and repay investors who he had allegedly defrauded by providing bogus CDs. However, today Stanford suffers the setbacks that came about when he was indicted.
In 2009, he was beaten by an inmate and he sustained broken bones on his face. Later in prison, he got addicted to prescription medicines for anxiety. He then spent 8 months at a rehabilitation unit in prison. But according to Stanford, he does not remember parts of his life and the business empire he ran.