WHEN: TODAY, TUESDAY, FEBRUARY 15TH AT 3:58PM ET
WHERE: CNBC'S "CLOSING BELL"
Following is breaking news from CNBC's Scott Cohn. All references must be sourced to CNBC.
Three weeks after a federal judge ordered it, accused Ponzi schemer Allen Stanford is being moved from the Houston detention facility where he was rendered incompetent to stand trial. And in a bizarre twist, Stanford is apparently headed to the same prison complex that holds convicted swindler Bernie Madoff. A U.S. Bureau of Prisons web site lists Stanford as "in transit," after more than a year at the Federal Detention Center in downtown Houston. The trip to Butner is expected to take several days.
Stanford has pleaded not guilty to 21 criminal counts in an alleged $7 billion Ponzi scheme, but was being held without bail at the detention center after the judge in the case ruled he is a flight risk. Last month, doctors for the government and the defense testified that Stanford had become addicted to anti-depressants after being severely beaten by another inmate in September, 2009. The doctors testified Stanford would need to be weaned from the drugs--a process that could take months--before he could assist in his own defense.
U.S. District Judge David Hittner indefinitely postponed Stanford's trial--which was to begin last month--and ordered that he be transferred to a facility within the federal prison system for drug treatment. Hittner recommended that Stanford be moved to the medical center within the federal prison complex in Butner, North Carolina, which includes a well-respected medical facility.
Two years ago Wednesday, the Securities and Exchange Commission sued Stanford and his companies alleging a massive, global fraud, which Stanford denies.
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