Jury selection began on Monday morning in the fraud trial of Allen Stanford in US federal court in Houston.
The 61-year-old Stanford is charged with using his Houston-based financial empire to swindle investors of more than $7 billion. At the heart of Stanford’s alleged fraud are certificates of deposit sold by his Antigua-based Stanford International Bank Ltd to about 28,000 investors.
Among the allegations is a claim he bribed an Antiguan banking regulator to ignore irregularities.
Receivers are still trying to locate the money that was invested with the Stanford Financial Group and its affiliate companies, but indications are that Stanford’s lavish, globe-trotting lifestyle, including the sponsorship of multi-million dollar Caribbean cricket tournaments, may have consumed most of it.
The US Securities and Exchange Commission in February 2009 sued Stanford, alleging that he and his employees lied about the certificates of deposit, telling investors the proceeds were invested in safe, liquid assets.
The financier has been in federal custody as a flight risk since his June 2009 indictment and, in September 2009, he suffered broken facial bones in a beating by another inmate. He reportedly became addicted to anti-anxiety medications prescribed by prison doctors after the attack and, after eight months in a prison rehabilitation unit, his lawyers claim he cannot now remember much of his life or details of his business empire.
Earlier this month, Stanford’s entire defence team tried to withdraw from the case, complaining that time and budget constraints imposed by the court had left them unable to defend him adequately. However, the judge disagreed and ordered the team to prepare for trial as scheduled.
