Friday, August 28, 2009
Former Stanford Financial CFO Pleads Guilty In $7 Billion Ponzi Scheme Case
James M. Davis, 60, the former chief financial officer of Houston-based Stanford Financial Group, pleaded guilty yesterday to fraud and obstruction charges related to a $7 billion scheme to defraud investors. On June 18th, Davis was charged in a criminal Information with conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct an SEC investigation. The scheme involved the fraudulent misappropriation of some $7 billion in investor funds meant to purchase certificates of deposit. Robert Allen Stanford, chairman; Laura Pendergest-Holt, chief investment officer; Gilberto Lopez, chief accounting officer; Mark Kuhrt, global controller; and Leroy King, the administrator and chief executive officer, were indicted on June 18, 2009, on fraud and obstruction charges related to the scheme. Each are charged with conspiracy to commit mail, wire and securities fraud; wire fraud; mail fraud; and conspiracy to commit money laundering. In addition, Stanford, Pendergest-Holt and King are charged with conspiracy to obstruct an SEC investigation and obstruction of an SEC investigation.
Read the DOJ announcement here.