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Stanford in Texas, To Appear in Court Thursday

Wednesday, 24 Jun 2009 | 4:21 AM ET

Allen Stanford is back in his home state of Texas and is being held at a federal detention facility in Conroe, Texas, about 40 miles north of Houston, according to his attorney.

The billionaire will be brought to Houston Thursday morning to appear in federal court, one week after a federal grand jury there indicted him for fraud, conspiracy and obstruction.

Stanford and five other executives were charged last week on 21 counts of fraud, conspiracy and obstruction charges.

Allen Stanford Trying to Get Set Free on Bail
Indicted billionaire Allen Stanford is back in his home state of Texas, where he will ask a federal judge to let him go free on bail pending his trial. CNBC's Scott Cohn has the story.

Federal prosecutors have accused him of running a massive scheme involving certificates of deposit (CDs) issued by his offshore bank in Antigua. Stanford, 59, was arrested at his girlfriend's home in Virginia on Thursday.

The billionaire has been in federal custody while making the trip back to Houston where the criminal charges were filed. A judge will decide if he should be released at the hearing.

Stanford has repeatedly denied any wrongdoing.

Laura Pendergest-Holt, the company's former chief investment officer and two of the firm's accountants are also due in court on Thursday, court records show.

The U.S. government has accused Stanford and the others of running a massive Ponzi scheme where investors in CDs sold by Stanford International Bank in Antigua were paid with funds from more recent investors.

Stanford could face life in prison if convicted on all counts in the indictment.

— Reuters contributed to this story

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