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Archive for Saturday, June 20, 2009

Billionaire jailed in alleged $7B fraud

June 20, 2009

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— Brash Texas billionaire R. Allen Stanford was indicted and jailed Friday on charges his international banking empire was really just a Ponzi scheme built on lies, bluster and bribery.

The Justice Department announced charges against Stanford and six others who allegedly helped the tycoon run a $7 billion swindle. At a court hearing in Richmond, Va., a federal judge agreed with prosecutors that Stanford poses a flight risk and ordered him to remain in custody until a future detention hearing in Houston.

If convicted of all charges in the 21-count indictment, Stanford could face as much as 250 years in prison, officials said.

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