Cricket

Stanford jailed for 110 years

2012-06-14 19:56
Allen Stanford (File)

Chicago - Financier and cricket mogul Allen Stanford was sentenced to 110 years in jail for a $7bn Ponzi scheme on Thursday, closing the book on the flamboyant ex-tycoon's stunning fall from grace.

The verdict will bring some satisfaction - but likely little financial relief - to 30 000 investors from more than 100 countries who were bilked by bogus investments with Stanford International Bank.

Investigators could not find 92 percent of the $8bn the bank said it had in assets and cash reserves.

Stanford, 62, has spent the past three years in jail after being deemed a flight risk. He will likely never taste freedom again.

US district judge David Hittner handed down the lengthy sentence at a hearing in Houston, Texas, a spokesperson for the US attorney's office told AFP.

Badly beaten in a jailhouse brawl, Stanford was temporarily declared unfit for trial after he became addicted to painkillers while also on antidepressants.

He tried to have his case completely dismissed after claiming that the beating and drugs destroyed his memory, but the judge denied the request.

Defence attorneys at trial tried to shift the blame to former chief financial officer James Davis, who they accused of perpetrating the entire fraud while Stanford naively placed his trust in his former college room-mate.

They also insisted the bulk of investor money was lost due to mismanagement by court-appointed receivers after the US government seized the bank.

Prosecutors scoffed at the notion, and said Stanford funded his lavish lifestyle by siphoning off $2 billion in investor deposits while pushing "bogus" certificates of deposits that promised artificially high returns based on "safe" investments.

Jurors found the moustachioed Texan guilty of 13 of 14 counts of fraud, conspiracy, money laundering and obstruction of justice in March.

A dual citizen of the United States and the Caribbean country of Antigua and Barbuda, Stanford was known for his largesse, especially on the two paradise islands.

He received a knighthood in 2006 from Antigua, where he was the largest employer, and rose to global prominence in 2008 by creating the Stanford 20/20 cricket tournament, which captured a television audience of 300 million.

His personal fiefdom soon began to crumble when it attracted scrutiny from financial regulators. Stanford was charged by the US Securities and Exchange Commission with fraud in February 2009 and arrested a few months later at his girlfriend's home in the eastern state of Virginia.

With a fortune of $2.2bn, Forbes magazine ranked Stanford as the 605th richest person in the world in 2006.

After most of those funds were frozen by the courts, Stanford was forced to accept appointed counsel.

Read more on:    allen stanford  |  cricket
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