Legal News

Another Potential Blow to Stanford: Bank?s CFO to Plead Guilty

By Ashby Jones

It hasn’t been a good few days for Allen Stanford. Earlier in the week, his bail was revoked. On Wednesday, one of Stanford’s co-defendants in the case, James Davis, the former CFO of Stanford Bank, announced his intention to plead guilty.

Davis, 60, has struck a deal with the government to plead guilty to the three fraud and conspiracy counts pending against him. As part of the agreement, Davis will continue to cooperate with federal authorities. David Finn, Davis’s lawyer, said in March his client was "devastated" and felt "very badly" for people hurt by alleged fraud at the crumbled firm. Click here for the WSJ story; here for the Houston Chronicle story.

Dick DeGuerin, Stanford's lawyer, was vigilant on Wednesday. He told the Chron that Davis had broad authority to act on behalf of various companies within the empire.

Said DeGuerin:

If Mr. Davis committed crimes, it was without the knowledge or approval of Allen Stanford, and Mr. Davis will have to answer for those crimes. It is human nature for a criminal to try to shift the blame for his own conduct in order to make a deal with the prosecution for a lesser sentence and to escape full responsibility for his crimes.

Full post as published by Law Blog - WSJ.com on July 02, 2009 (boomark / email).