Financier Allen Stanford Held Without Bond Pending Detention Hearing
Billionaire financier Allen Stamford has been under investigation for months and represented by Dick DeGuerin of Houston, one of the country's best criminal defense lawyers. Yesterday, the Government chose to unseal the indictment against him, while he was in Virginia. The FBI knew exactly where he was -- at his girlfriend's home -- and arrested him there.
Today, Stanford appeared in court in Virginia and the Government announced it was seeking detention. The court ordered him held without bond until his detention hearing, which will be in Houston.
So Stanford, who is presumed innocent, will spend at least the weekend, and probably more, in jail waiting to be flown by the U.S. Marshal's Service to Houston. [More...]
Why couldn't they call DeGuerin and allow him to surrender Stanford in Houston? DeGuerin had been offering to surrender Stanford for weeks. If he was going to run, he would have done it by now. Also, according to DeGuerin:
"Since at least February of this year, Allen Stanford has been working with lawyers to meet and challenge the false accusations against him. Those accusations being that the Stanford companies were fraudulent and constituted a Ponzi scheme," DeGuerin said in a prepared statement.
"To the contrary, the present insolvency of the Stanford companies was caused by the SEC's heavy-handed actions, which have destroyed and continue to destroy much of the value of the Stanford companies and consequently the interests of investors."
The indictment is available here (pdf.)
Update: Check out this motion for fees filed by the law firm appointed as receiver in the SEC civil case against Stanford.(The motion was granted.)
For just under two months of work, the receiver asked for and received $19 million for itself and 14 other law firms and entities it hired. Of the $19 million, Baker, Potts got $5 million, a forensic litigation service company, FTI, got $6 million, and Ernest & Young got $3.5 million. That's just for fees, they got more for their expenses. Not bad for less than 60 days of work. And, they will be submitting bills monthly from now on.
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