Stanford launches robust defence in fraud case

Wednesday, 22 April 2009 15:56

Allen Stanford, the Texas financier accused of defrauding tens of thousands of bank depositors, has denied that he is a thief. He also denied that his operation was a Ponzi scheme and indicated that if any depositor money had been lost, this was attributable to the US government deploying what he termed “Gestapo tactics”.

“I don’t think there is any money missing,” Stanford said. “There never was a Ponzi scheme, and there never was an attempt to defraud anybody.”

The American government has indicated as much as $6 billion appears to be unaccounted for. Stanford advanced a number of explanations regarding the difficulties surrounding the Stanford Financial Group and Stanford International Bank.

He admitted some of the assets held by his organisation on his clients’ behalf may have declined in value. He claimed the global economic crisis and government actions directed against him were responsible for the situation. But he also indicated that if any fraud had been committed, James Davis, his former chief financial officer, should be held responsible.

“The investment and risk committee reported to Jim Davis, not to me,” he said. “The Stanford International Bank quarterly report was produced under Davis’s direction and signed off by him. I trusted his integrity.”

Davis is said to be cooperating with the government. It looks increasingly likely he and Stanford will strike staunchly opposing positions in court.

“Stanford told my client what the quarterly numbers for the firm had to be,” said Davis’s lawyer, David Finn. “He used Davis. And if Davis didn’t go along with it, he said he could easily find someone else who would.”

Stanford responded, “That is an absolute lie.”

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