Stanford CFO Pleads Guilty; Allen Stanford Hospitalized


The chief financial officer of accused swindler Allen Stanford entered a guilty plea on Thursday in a $7 billion fraud case as Stanford was rushed to the hospital with a rapid heart rate.

Under the plea agreement, Stanford's top aide, James Davis, is not entitled to any reduction in his sentence.

The three counts the 60-year-old Davis pleaded guilty to carry a maximum 30 years in prison if served consecutively. (The conspiracy and obstruction counts carry a maximum five year sentence, and the mail fraud count carries a maximum 20 years.)

  • Read James Davis' Plea Documents Here
  • Read James Davis' Order of Forfeiture Here

A judge could decide to impose the sentence concurrently, reducing the term to 20 years, and Davis could get additional time off for his cooperation, but there is nothing in the agreement that requires it.

Video: CNBC's Scott Cohn reports the latest news regarding Allen Stanford, including his trip to the hospital.

Separately, Stanford was scheduled to appear before a federal judge Thursday morning, in hopes of determining what attorneys would represent him.

Stanford, who is indicted on 21 felony counts in an alleged Ponzi scheme, has been unable to pay for an attorney since his assets are frozen.

That court appearance has been postponed after he was rushed to a rushed to a hospital emergency room with a rapid heartbeat early this morning, Stanford's attorney of record Dick DeGuerin said.

Stanford is expected to remain in a Conroe, TX hospital for three to five days for observation, according to DeGuerin, who said he has no further information about his client's condition.