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Senior Correspondent, CNBC
Federal prosecutors are opposing accused fraudster Allen Stanford's plan to hire a new attorney, increasing the likelihood that the man who was once Forbes' 205th richest American could be represented by a public defender.
Stanford's assets have been frozen since the Securities and Exchange Commission sued him in February, leaving him with no funds to pay for an attorney.
Last week, Stanford's Houston criminal defense attorney, Dick DeGuerin, asked to withdraw from the case since he could not be assured he would be paid. Stanford had hoped to replace DeGuerin with attorney Robert Luskin of the Washington law firm of Patton Boggs, but Luskin also wanted assurances he would be paid before signing onto the case full time. So Luskin asked the court for permission to make a "limited appearance" in the case, in hopes of un-freezing enough of Stanford's assets to pay for a defense.
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AP Allen Stanford |
But in papers filed Tuesday, federal prosecutors say the plan runs the risk of dragging the case on indefinitely, and that Stanford's civil attorneys, also with Patton Boggs, can argue for the release of funds without bringing in yet another lawyer. A spokesperson for Patton Boggs declined to comment.
For now, U.S. District Judge David Hittner has ruled that DeGuerin must stay on the case while the situation is sorted out.
Stanford, indicted on 21 felony counts in the alleged Ponzi scheme, remains in custody at a federal detention center north of Houston after Hittner ruled he is a flight risk. Stanford was taken into custody the day he was indicted, June 18. He has been behind bars ever since.
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