Friday, 10 Feb 2012 By: Scott Cohn
Senior Correspondent, CNBC
In an unusual move, attorneys for accused Ponzi mastermind Allen Stanford
have issued a subpoena to compel the attorney for the prosecution's star
witness to testify, CNBC has learned.
David Finn, the attorney for former Chief Financial Officer James Davis,
tells CNBC that United States Marshalls served the subpoena at his office
Friday.
Davis, who was also Stanford's college roommate, wrapped up roughly four
days of testimony earlier this week, in which he implicated his former boss
in the alleged $7 billion scheme.
Davis pleaded guilty in 2009 to three felony counts. Defense attorneys
allege his testimony was fabricated in hopes of receiving a lighter
sentence.
Stanford, 61, is on trial in Houston on 14 counts. Prosecutors could rest
their case as soon as today - day 15 of the trial.
That means Finn could be on the witness stand as early as Monday, although
defense attorneys have been careful not to tip their hand about their
strategy.
Calling the attorney for the main witness against their client is not only
an unusual move, it could be risky for the Stanford defense team. While they
apparently hope to attack the plea agreement Finn arranged for Davis, Finn
also could be privy to information that damages Stanford in the eyes of the
jury.
The defense has also indicated it plans to call Stanford himself to testify
- a strategy that, if they follow through with it, could involve even bigger risks.
Showing posts with label subpoena. Show all posts
Showing posts with label subpoena. Show all posts
Tuesday, 14 February 2012
Saturday, 11 February 2012
Stanford's Lawyers Subpoena Attorney of Key Witness
Friday, 10 Feb 2012 By: Scott Cohn Senior Correspondent, CNBC
In an unusual move, attorneys for accused Ponzi mastermind Allen Stanford have issued a subpoena to compel the attorney for the prosecution's star witness to testify, CNBC has learned.
David Finn, the attorney for former Chief Financial Officer James Davis, tells CNBC that United States Marshalls served the subpoena at his office Friday.
Davis, who was also Stanford's college roommate, wrapped up roughly four days of testimony earlier this week, in which he implicated his former boss in the alleged $7 billion scheme.
Davis pleaded guilty in 2009 to three felony counts. Defense attorneys allege his testimony was fabricated in hopes of receiving a lighter sentence.
Stanford, 61, is on trial in Houston on 14 counts. Prosecutors could rest their case as soon as today - day 15 of the trial.
That means Finn could be on the witness stand as early as Monday, although defense attorneys have been careful not to tip their hand about their strategy.
Calling the attorney for the main witness against their client is not only an unusual move, it could be risky for the Stanford defense team. While they apparently hope to attack the plea agreement Finn arranged for Davis, Finn also could be privy to information that damages Stanford in the eyes of the jury.
The defense has also indicated it plans to call Stanford himself to testify
- a strategy that, if they follow through with it, could involve even bigger risks
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Stanford claims 'defied imagination'
Fri, February 10, 2012
HOUSTON, Texas, CMC - An Antiguan regulator who scrutinized disgraced Texas tycoon R. Allen Stanford's bank in the months preceding its collapse said on Thursday he was in disbelief about the profits it claimed.
"It defied my imagination that the bank could make a billion dollar profit,"
Paul Ashe of Antigua's Financial Services Regulatory Commission told jurors in Stanford's criminal trial in US federal district court here, alluding to profits Stanford's Antigua-based Stanford International Bank (SIB) claimed in light of the 2008 international financial crisis.
Ashe also said there was panic among tens of thousands of depositors after the US financial services regulator, the Securities and Exchange Commission (SEC), froze Stanford's assets, in February 2009, over the alleged "massive
US$7 billion Ponzi scheme involving high-yield certificates of deposit at the SIB.
"It was total chaos," he testified. "The customers were screaming for their money."
Ashe said he and a team of regulators were surprised by the lack of documentation to support Stanford's reported finances at the SIB.
He also said the team was deeply concerned about loans that Stanford received from the SIB, which, he claimed, were not supported by cash reserves necessary under Antigua laws.
"We wanted to see how Stanford International Bank was actually making its money," Ashe said.
US prosecutors have charged that Stanford used depositors' money to operate his businesses, pay for his lavish lifestyle, and bribe regulators and auditors.
They also charged that Stanford lied to depositors by telling them their money was being safely invested.
Stanford has repeatedly denied any wrongdoing. He has been charged with 14 counts, including mail and wire fraud, in the criminal case. He faces up to 20 years in prison if convicted.
Stanford's former finance chief, James Davis, has pleaded guilty to three felony counts and testified, for five days on the stand, as a government witness against his ex-boss.
Davis claimed that Stanford was the architect and mastermind behind the alleged "massive" Ponzi scheme.
He also told the court that Stanford was the chief beneficiary of the alleged scheme.
In a separate indictment, to be tried later, former head of the Antigua Financial Services Regulatory Commission, Leroy King, is also charged in the alleged Ponzi scheme, along with three Stanford financial officials.
Prosecutors allege that King alerted SIB officials when the SEC began making inquiries in 2005, and that Stanford's general counsel drafted King's response stating that the bank was in compliance with regulations.
Witnesses have testified that, besides cash payments, King received tickets to the 2004 and 2006 Super Bowls of the American National Football League.
Ashe, who served with King for part of King's tenure, said he was unaware of those payments, adding that Antigua laws prohibit regulators from accepting gifts worth more than $50.
In an unusual move, attorneys for accused Ponzi mastermind Allen Stanford have issued a subpoena to compel the attorney for the prosecution's star witness to testify, CNBC has learned.
David Finn, the attorney for former Chief Financial Officer James Davis, tells CNBC that United States Marshalls served the subpoena at his office Friday.
Davis, who was also Stanford's college roommate, wrapped up roughly four days of testimony earlier this week, in which he implicated his former boss in the alleged $7 billion scheme.
Davis pleaded guilty in 2009 to three felony counts. Defense attorneys allege his testimony was fabricated in hopes of receiving a lighter sentence.
Stanford, 61, is on trial in Houston on 14 counts. Prosecutors could rest their case as soon as today - day 15 of the trial.
That means Finn could be on the witness stand as early as Monday, although defense attorneys have been careful not to tip their hand about their strategy.
Calling the attorney for the main witness against their client is not only an unusual move, it could be risky for the Stanford defense team. While they apparently hope to attack the plea agreement Finn arranged for Davis, Finn also could be privy to information that damages Stanford in the eyes of the jury.
The defense has also indicated it plans to call Stanford himself to testify
- a strategy that, if they follow through with it, could involve even bigger risks
---------------------------------------------------------------------------
---------------------------------------------------------
Stanford claims 'defied imagination'
Fri, February 10, 2012
HOUSTON, Texas, CMC - An Antiguan regulator who scrutinized disgraced Texas tycoon R. Allen Stanford's bank in the months preceding its collapse said on Thursday he was in disbelief about the profits it claimed.
"It defied my imagination that the bank could make a billion dollar profit,"
Paul Ashe of Antigua's Financial Services Regulatory Commission told jurors in Stanford's criminal trial in US federal district court here, alluding to profits Stanford's Antigua-based Stanford International Bank (SIB) claimed in light of the 2008 international financial crisis.
Ashe also said there was panic among tens of thousands of depositors after the US financial services regulator, the Securities and Exchange Commission (SEC), froze Stanford's assets, in February 2009, over the alleged "massive
US$7 billion Ponzi scheme involving high-yield certificates of deposit at the SIB.
"It was total chaos," he testified. "The customers were screaming for their money."
Ashe said he and a team of regulators were surprised by the lack of documentation to support Stanford's reported finances at the SIB.
He also said the team was deeply concerned about loans that Stanford received from the SIB, which, he claimed, were not supported by cash reserves necessary under Antigua laws.
"We wanted to see how Stanford International Bank was actually making its money," Ashe said.
US prosecutors have charged that Stanford used depositors' money to operate his businesses, pay for his lavish lifestyle, and bribe regulators and auditors.
They also charged that Stanford lied to depositors by telling them their money was being safely invested.
Stanford has repeatedly denied any wrongdoing. He has been charged with 14 counts, including mail and wire fraud, in the criminal case. He faces up to 20 years in prison if convicted.
Stanford's former finance chief, James Davis, has pleaded guilty to three felony counts and testified, for five days on the stand, as a government witness against his ex-boss.
Davis claimed that Stanford was the architect and mastermind behind the alleged "massive" Ponzi scheme.
He also told the court that Stanford was the chief beneficiary of the alleged scheme.
In a separate indictment, to be tried later, former head of the Antigua Financial Services Regulatory Commission, Leroy King, is also charged in the alleged Ponzi scheme, along with three Stanford financial officials.
Prosecutors allege that King alerted SIB officials when the SEC began making inquiries in 2005, and that Stanford's general counsel drafted King's response stating that the bank was in compliance with regulations.
Witnesses have testified that, besides cash payments, King received tickets to the 2004 and 2006 Super Bowls of the American National Football League.
Ashe, who served with King for part of King's tenure, said he was unaware of those payments, adding that Antigua laws prohibit regulators from accepting gifts worth more than $50.
Tuesday, 22 February 2011
Allen Stanford Receiver to Argue for SocGen Subpoena Feb. 28
Lawyers for R. Allen Stanford’s U.S. court-appointed receiver are scheduled to appear with those for a Societe Generale unit before a federal judge to resolve a dispute over subpoenaed records.
U.S. District Judge David Godbey in Dallas set a hearing for Feb. 28 to address the disagreement between the Lausanne, Switzerland-based unit of the Paris-based bank and the receivership overseeing the indicted financier’s businesses.
Citing Swiss banking secrecy laws, Societe Generale Private Banking (Suisse) SA has objected to receiver Ralph Janvey’s Dec. 13 subpoena demanding that the bank turn over all of its records after Jan. 1, 2000, for accounts held by Stanford personally or by his businesses.
“Production of the requested documents would force SG Suisse and its officers and employees to violate Swiss substantive law,” including laws prohibiting the release of the type of records Janvey seeks, the bank said in a Feb. 7 court filing.
Stanford, 60, is civilly and criminally accused by the U.S. of leading a $7 billion investment-fraud scheme through the sale of certificates of deposit by his Antigua-based Stanford International Bank Ltd. He has denied any wrongdoing.
The U.S. Securities and Exchange Commission filed its enforcement proceeding against the Texas financier two years ago Feb. 18. The receivership is recovering money to repay Stanford’s investors and creditors.
The SEC case is Securities and Exchange Commission v. Stanford International Bank Ltd., 09-cv-00298, U.S. District Court, Northern District of Texas (Dallas). The criminal case is U.S. v. Stanford, 09-cr-00342, U.S. District Court, Southern District of Texas (Houston).
U.S. District Judge David Godbey in Dallas set a hearing for Feb. 28 to address the disagreement between the Lausanne, Switzerland-based unit of the Paris-based bank and the receivership overseeing the indicted financier’s businesses.
Citing Swiss banking secrecy laws, Societe Generale Private Banking (Suisse) SA has objected to receiver Ralph Janvey’s Dec. 13 subpoena demanding that the bank turn over all of its records after Jan. 1, 2000, for accounts held by Stanford personally or by his businesses.
“Production of the requested documents would force SG Suisse and its officers and employees to violate Swiss substantive law,” including laws prohibiting the release of the type of records Janvey seeks, the bank said in a Feb. 7 court filing.
Stanford, 60, is civilly and criminally accused by the U.S. of leading a $7 billion investment-fraud scheme through the sale of certificates of deposit by his Antigua-based Stanford International Bank Ltd. He has denied any wrongdoing.
The U.S. Securities and Exchange Commission filed its enforcement proceeding against the Texas financier two years ago Feb. 18. The receivership is recovering money to repay Stanford’s investors and creditors.
The SEC case is Securities and Exchange Commission v. Stanford International Bank Ltd., 09-cv-00298, U.S. District Court, Northern District of Texas (Dallas). The criminal case is U.S. v. Stanford, 09-cr-00342, U.S. District Court, Southern District of Texas (Houston).