Man accused of fraud suffers brain injury while in prison
Our Portland readers may have heard about the recent conviction of 61-year-old Texas financier Allen Stanford on fraud charges connected to what is said to be the biggest Ponzi scheme since that of Bernie Madoff.
Stanford was arrested in June 2009 on charges of fraud, obstructing a U.S. Securities and Exchange Commission investigation and conspiracy, among 10 other charges. While awaiting his early 2012 trial, another inmate allegedly beat the man so badly that he had a brain injury and became addicted to anti-anxiety medication. His attorneys argued that he had lost his memory and could not testify about the alleged actions for which he was arrested. Stanford had said he wanted to tell his story to the jury but ended up not testifying.
According to sources, Stanford studied finance in college, later on going into business with a college friend, whom he made the CFO of his Antigua bank. In early February 2009, investors got wind that the bank may be in trouble and attempted to withdraw their money. By Feb. 17, 2009, the government had shut down Stanford's headquarters in the United States, and he was arrested in June of that year.
Originally, the Standard jury came back and said that they could not make a decision. The United States District Judge told the jury to continue deliberating, which resulted in guilty verdict the next day.
In total, the counts on which Stanford was convicted carry a sentence of over 200 years if the sentences are to be served consecutively. He will only have to serve 20 years if it is ruled he serve the sentence concurrently. In most white collar cases, sentences are ordered concurrently.
Stanford's attorney said he expects sentencing in several months. It isn't yet clear yet whether Stanford will appeal the court's ruling, but it is not unlikely.