GO
Loading...

Enter multiple symbols separated by commas

Stanford in Texas, To Appear in Court Thursday

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.

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

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Cramer: Here's a sign the market could rally

    Wall Street's been soaking in red, but "Mad Money" host Jim Cramer has one signal to watch for that could point to another run.

  • Burger war maneuvers

    Cramer looks at the number of company's selling burgers and tries to determine the quality names, as well as those to avoid.

  • Cramer: What's driving defense?

    Cramer says that even though President Obama has made it clear the US can no longer be the world's policeman, the country can become the world's arms dealer. Profiting from defense spending.