Legal blow for Caribbean billionaire Stanford

Posted by on Oct 15, 2010 in Local News & Alerts | 0 comments

By CaribbeanWorldNews.com

FORMER Antigua-based billionaire, the flamboyant R. Allen Stanford, must shell out his own money to pay for his legal defense.

Image: nbsrocks.com

Judge Nancy Atlas this week ruled that lawyers for Lloyds of London had proven at a trial in August that it was likely that Stanford had committed money laundering.

As such he will not be able to use an insurance policy from Lloyds to cover his defense against charges that he swindled billions of dollars from his former Antigua-based Stanford International Bank.

Lloyd`s of London had previously agreed to make the payout until Stanford`s CFO pleaded guilty to mail fraud, obstruction and securities fraud.

US prosecutors allege that the Texan-born former cricketer entrepreneur swindled some $7 billion dollars from clients from more than 100 countries who bought certificates of deposit at the Stanford International Bank on Antigua.

Stanford has been jailed since June last year and insists he is innocent. He was counting on the $100 million insurance policy to fund his and his co-defendants defense. Stanford`s criminal trial is slated to start in late January.

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