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Allen Stanford indicted on criminal charge of fraud crime

Published on 19 Jun 2009 under category: legal

Disgraced banker Allen Stanford will be appearing in court to answer criminal charges that he took part in fraud crime.

The billionaire, who had ties with the England and Wales Cricket Board, has been indicted and surrendered himself to the FBI.

This follows the announcement of a civil case surrounding the sale of $8 billion (£4.8 billion) in high-return certificates of deposit issued by Stanford International Bank, which were then repaid with money invested by others.

Deputies Laura Pendergest-Holt and James Davis also face accusations of fraud crime by the US Securities and Exchange Commission for their part in this scheme, which all three deny.

Mr Stanford will make his response to the indictment in Virginia before moving to Houston.

In other news, victims of fraud crime case defendant Bernard Madoff recently wrote to the judge calling for a harsh sentence to be imposed for the charges of fraud, perjury and false reporting he has pleaded guilty to.