Verdict Still Out on Bond for Financier Sir Robert Allen Stanford
As reported by the Houston Chronicle, Texas and Antiguan billionaire financier Sir Robert Allen Stanford remains in custody following a hearing yesterday in the U.S. District Court for the Southern District of Texas in which the prosecution asked the Court to revoke the $500,000 bond initially set for Stanford. Assistant U.S. Attorney Gregg Costa argued to U.S. District Judge David Hittner that Stanford’s international ties make him a substantial flight risk, distinguishing him from former Enron executives Kenneth Lay and Jeffrey Skilling, who were released on bond. The prosecution argued that Stanford might have access to vast wealth from investors hidden abroad. It also speculated that Stanford has a network of wealthy acquaintances abroad who might assist Stanford in fleeing.
Stanford’s attorney, Dick DeGuerin, countered that his client is broke because all of his assets have been seized by the Government. DeGuerin claimed that even though Stanford had been considered one of the wealthiest men in the U.S., with a net worth of more than $2 billion, his family and friends had to come up with the $100,000 in cash for his bond. DeGuerin stated that Stanford has no interest in fleeing because "When we win this case, and we will win this case, Mr. Stanford will be restored of much of what he has been stripped of… That is a tremendous financial incentive to stay." DeGuerin also cited the fact that Stanford has resided in Houston recently, has strong family ties with the U.S., and voluntarily surrendered to authorities. Stanford gave a thumbs up to family members in the courtroom.
Costa claimed that Stanford defrauded investors of approximately $7 billion in a massive Ponzi scheme, diverting $1.6 billion to himself in personal loans to fund a lavish lifestyle, which included six private jets, a helicopter and homes in Miami and St. Croix.