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Financier Stanford pleads not guilty in $7 billion fraud scheme

By Bernard Hibbitts (editor) and University of Pittsburgh School of Law students.

[JURIST] Billionaire financier Allen Stanford pleaded not guilty Thursday to 21 charges of fraud, conspiracy, and obstruction in the US District Court for the Southern District of Texas but remained in prison overnight. Prosecutors opposed Stanford's release by filing a memorandum in support of detention Thursday that argues Stanford would pose a flight risk if freed from custody. US Magistrate Judge Frances Stacy stayed Stanford's release on $500,000 bail until Friday so that federal prosecutors could appeal. Stanford was indicted last week on fraud and obstruction charges related to an alleged $7 billion fraud scheme. Through three of his investment companies, Stanford allegedly violated the Securities Act of 1933, the Securities Exchange Act of 1934 and the Investment Company Act of 1940. He was charged in February with running a fraudulent investment scheme by selling certificates of deposit on the promise of improbably high interest rates.

Full post as published by JURIST - The Paper Chase on June 26, 2009 (boomark / email).