Allen Stanford, the accused swindler, was rushed to hospital from his prison cell in Texas at 5.50am, Dick DeGuerin, his lawyer, confirmed today.
The Texas-born financier and cricket impresario was taken to Conroe Regional Medical Center with a rapid heart rate of more than 300 beats a minute.
Mr Stanford, 59, faces charges, which he denies, of defrauding US investors out of $7 billion (£4.3 billion), and was recently denied bail on the ground that he represented a flight risk.
He has been sharing a cell with about ten inmates at a prison in Conroe, Texas, where he has complained of the "intolerable" conditions with temperatures reaching 38C (100F).
"They have almost non-existent medical care there. A fellow cellmate almost died with rapid heart beat several weeks ago," he said.
Mr DeGuerin was speaking on his way to a court hearing at 9am that was due to include Mr Stanford.
The lawyer is seeking to withdraw from the case because, among other reasons, he has yet to be paid.
"I don’t think the hearing can go ahead in Sir Allen’s absence," he said.
Meanwhile, James Davis, Mr Stanford's former finance director, pleaded guilty to fraud charges when he appeared in court today.
Thursday, 27 August 2009
Stanford’s Private-Equity Stakes to Be Sold Over His Objection
Stanford’s investments in an Israeli development fund and a luxury Houston hotel can be sold immediately, over objections from the financier that he hasn’t been convicted of any wrongdoing, a federal judge ruled.
Court-appointed receiver Ralph Janvey won approval to sell several pieces of Stanford’s private-equity portfolio on an emergency basis to avoid meeting capital calls or diluting the investments, according to an order posted yesterday by U.S. District Judge David Godbey in Dallas.
The transactions “are in the best interest of the receivership estate,” the judge wrote.
Stanford is fighting criminal and civil allegations that he defrauded investors of more than $7 billion through the sale of bogus certificates of deposit at Antigua-based Stanford International Bank Ltd. He had urged Godbey to block the sales.
The Texas financier, who is in jail awaiting trial, complained Janvey is selling his investments at steeply discounted prices and increasing investor losses by failing to let the stakes mature.
Janvey asked Godbey’s permission to sell Stanford’s share of the Israeli fund and the Houston hotel after receiving offers from other limited partners already participating in each project.
Court-appointed receiver Ralph Janvey won approval to sell several pieces of Stanford’s private-equity portfolio on an emergency basis to avoid meeting capital calls or diluting the investments, according to an order posted yesterday by U.S. District Judge David Godbey in Dallas.
The transactions “are in the best interest of the receivership estate,” the judge wrote.
Stanford is fighting criminal and civil allegations that he defrauded investors of more than $7 billion through the sale of bogus certificates of deposit at Antigua-based Stanford International Bank Ltd. He had urged Godbey to block the sales.
The Texas financier, who is in jail awaiting trial, complained Janvey is selling his investments at steeply discounted prices and increasing investor losses by failing to let the stakes mature.
Janvey asked Godbey’s permission to sell Stanford’s share of the Israeli fund and the Houston hotel after receiving offers from other limited partners already participating in each project.
Tuesday, 25 August 2009
Stanford Victims file Class Action Suit against Trustmark National Bank, HSBC Bank PLC, The Toronto-Dominion Bank, SG Private Banking (SUISSE) S.A.
STANFORD VICTIMS FILE CLASS ACTION SUIT AGAINST TRUSTMARK NATIONAL BANK, HSBC BANK PLC, THE TORONTO-DOMINION BANK, SG PRIVATE BANKING (SUISSE) S.A., AND BANK OF HOUSTON
HOUSTON, TX - Victims of Stanford International Bank, Ltd., part of the Stanford Financial Group, filed a class action lawsuit in Texas state court in Houston on August 23, alleging that Trustmark National Bank, HSBC Bank PLC, The Toronto-Dominion Bank, SG Private Banking (Suisse) S.A., and Bank of Houston "provided essential assistance to Stanford in one of the largest financial crimes in history."
The class action petition alleges that the banks conspired with Stanford to commit fraud. The plaintiffs seek more than $7 billion in damages. The lawsuit also seeks to recover all of the fees paid to the banks by Stanford under the Uniform Fraudulent Transfers Act.
The plaintiffs are represented by the New York law firm of Morgenstern & Blue, LLC, which last month filed a class action complaint against the Commonwealth of Antigua and Barbuda alleging that the island nation conspired with Stanford and protected Stanford's banking activities from scrutiny by the Securities and Exchange Commission and other regulators.
The case is Rotstain v. Trustmark National Bank, Harris County (Houston), cause number 2009-53845.
Contact: Peter D. Morgenstern
pmorgenstern@mfbnyc.com
(212) 750-6776
HOUSTON, TX - Victims of Stanford International Bank, Ltd., part of the Stanford Financial Group, filed a class action lawsuit in Texas state court in Houston on August 23, alleging that Trustmark National Bank, HSBC Bank PLC, The Toronto-Dominion Bank, SG Private Banking (Suisse) S.A., and Bank of Houston "provided essential assistance to Stanford in one of the largest financial crimes in history."
The class action petition alleges that the banks conspired with Stanford to commit fraud. The plaintiffs seek more than $7 billion in damages. The lawsuit also seeks to recover all of the fees paid to the banks by Stanford under the Uniform Fraudulent Transfers Act.
The plaintiffs are represented by the New York law firm of Morgenstern & Blue, LLC, which last month filed a class action complaint against the Commonwealth of Antigua and Barbuda alleging that the island nation conspired with Stanford and protected Stanford's banking activities from scrutiny by the Securities and Exchange Commission and other regulators.
The case is Rotstain v. Trustmark National Bank, Harris County (Houston), cause number 2009-53845.
Contact: Peter D. Morgenstern
pmorgenstern@mfbnyc.com
(212) 750-6776
Saturday, 22 August 2009
Lawyers' dispute turns physical
Jailed former billionaire R. Allen Stanford has had trouble paying, and thus keeping, his attorneys, and now it appears two of them got into a physical altercation last month.
A Houston Police Department report shows that on the evening of July 10 several officers responded to a call to the office of Dick DeGuerin, a criminal defense lawyer who has since asked to be released from representing Stanford.
DeGuerin said he called police because Houston attorney Michael Sydow punched him and was trespassing and refused to leave.
But Sydow, a civil lawyer who has attempted to serve in limited capacity in Stanford's criminal case, told police that DeGuerin pushed him into a chair and bumped him with his chest.
Houston Police spokesman John Cannon confirmed that the report includes a photo of DeGuerin's chest with a red mark where DeGuerin said Sydow punched him with his fist.
Neither lawyer pressed charges.
DeGuerin said the two argued over a written statement in which Stanford allowed DeGuerin to collect his fees from an insurance policy Stanford's company carried. Exactly how Stanford will pay whoever ends up representing him is unclear, because his assets were frozen when federal regulators filed a civil fraud complaint against him, his companies, and other company executives.
DeGuerin said Sydow called him a liar. He said he then ordered Sydow out of the office and grabbed the document, at which point Sydow punched him. DeGuerin, who had a knee replacement a month before the incident, said he neither pushed nor chest bumped Sydow. He said two other men from the office intervened and corralled Sydow into an outer office while DeGuerin called police.
Sydow, who said he is serving as local counsel in the criminal case, said Friday that they were discussing DeGuerin charging a $30 million flat fee to Stanford.
Sydow said he told DeGuerin he thought it unethical to change fees mid-representation, and that riled DeGuerin.
Sydow said he stood up and DeGuerin shoved him back into a chair, grabbed the document and then claimed Sydow assaulted DeGuerin. Sydow said he never punched DeGuerin.
DeGuerin said details of this altercation are among many papers he's supplied Senior U.S. Judge David Hittner in his effort to get off the case. He said the documents show that Stanford wishes to have other attorneys, including Sydow. DeGuerin said he can't work with Sydow.
Stanford faces 21 criminal charges in an alleged $7 billion scam focusing on CDs at his offshore bank.
On July 31, a news release announced Stanford's new criminal lawyer would be Robert Luskin of Washington, D.C.
Luskin said he would enter the case only if he could be assured he would be paid.
Hittner refused to release DeGuerin from the case until another lawyer entered unconditionally.
Hittner denied Sydow's request to enter the case just to receive notices regarding whether Luskin could be paid. Luskin and Sydow went to an appeals court to remove Judge Hittner from the case but were denied.
“It's an impossible situation,” DeGuerin said.
A Houston Police Department report shows that on the evening of July 10 several officers responded to a call to the office of Dick DeGuerin, a criminal defense lawyer who has since asked to be released from representing Stanford.
DeGuerin said he called police because Houston attorney Michael Sydow punched him and was trespassing and refused to leave.
But Sydow, a civil lawyer who has attempted to serve in limited capacity in Stanford's criminal case, told police that DeGuerin pushed him into a chair and bumped him with his chest.
Houston Police spokesman John Cannon confirmed that the report includes a photo of DeGuerin's chest with a red mark where DeGuerin said Sydow punched him with his fist.
Neither lawyer pressed charges.
DeGuerin said the two argued over a written statement in which Stanford allowed DeGuerin to collect his fees from an insurance policy Stanford's company carried. Exactly how Stanford will pay whoever ends up representing him is unclear, because his assets were frozen when federal regulators filed a civil fraud complaint against him, his companies, and other company executives.
DeGuerin said Sydow called him a liar. He said he then ordered Sydow out of the office and grabbed the document, at which point Sydow punched him. DeGuerin, who had a knee replacement a month before the incident, said he neither pushed nor chest bumped Sydow. He said two other men from the office intervened and corralled Sydow into an outer office while DeGuerin called police.
Sydow, who said he is serving as local counsel in the criminal case, said Friday that they were discussing DeGuerin charging a $30 million flat fee to Stanford.
Sydow said he told DeGuerin he thought it unethical to change fees mid-representation, and that riled DeGuerin.
Sydow said he stood up and DeGuerin shoved him back into a chair, grabbed the document and then claimed Sydow assaulted DeGuerin. Sydow said he never punched DeGuerin.
DeGuerin said details of this altercation are among many papers he's supplied Senior U.S. Judge David Hittner in his effort to get off the case. He said the documents show that Stanford wishes to have other attorneys, including Sydow. DeGuerin said he can't work with Sydow.
Stanford faces 21 criminal charges in an alleged $7 billion scam focusing on CDs at his offshore bank.
On July 31, a news release announced Stanford's new criminal lawyer would be Robert Luskin of Washington, D.C.
Luskin said he would enter the case only if he could be assured he would be paid.
Hittner refused to release DeGuerin from the case until another lawyer entered unconditionally.
Hittner denied Sydow's request to enter the case just to receive notices regarding whether Luskin could be paid. Luskin and Sydow went to an appeals court to remove Judge Hittner from the case but were denied.
“It's an impossible situation,” DeGuerin said.
Wednesday, 19 August 2009
Appellate court: Stanford criminal case stays put
An appellate court today refused to move R. Allen Stanford's criminal case to a new federal judge as the fallen billionaire requested.
A three-member panel of the 5th U.S. Circuit Court of Appeals denied the request in a one-sentence order.
Houston civil attorney Michael Sydow and Washington criminal defense lawyer Robert Luskin had asked that Senior U.S. District Judge David Hittner be removed from the case and it be moved to U.S. District Judge Vanessa Gilmore, who drew the first case against one of Stanford's codefendants. Stanford and others are accused of bilking investors in a $7 billion fraud.
“We're disappointed in the result but hopeful that Mr. Stanford will ultimately be permitted to be represented by counsel of his choice,” Luskin said Tuesday.
Luskin and Sydow argued Hittner exhibited “unexplained hostility” in refusing Sydow's request to make an appearance and in ordering that Sydow have no further involvement in the criminal case.
Sydow asked the court to consider him Stanford's lawyer for the limited purpose of receiving notices on a motion filed by Luskin's firm, Patton Boggs, which wants assurance it will be paid before it agrees to represent Stanford.
Houston criminal defense lawyer Dick DeGuerin has asked to be released from the case but Hittner has required DeGuerin stay on until another lawyer enters unconditionally on Stanford's behalf.
Today's appellate ruling came just hours after prosecutors Gregg Costa and Paul Pelletier asked the court to deny Stanford's request to move the case. They said the request for appellate intervention was premature and that allowing attorneys into the case conditionally would cause delay.
The prosecutors said Hittner did not display bias against Sydow and that the matter of fees could be resolved in other courts.
Stanford has not been able to pay his lawyers because his personal assets were frozen along with his company's assets in a civil suit filed in Dallas by the Securities and Exchange Commission. Attorneys for several Stanford-related entities and individuals are attempting to be paid through unfrozen assets or an insurance policy.
A three-member panel of the 5th U.S. Circuit Court of Appeals denied the request in a one-sentence order.
Houston civil attorney Michael Sydow and Washington criminal defense lawyer Robert Luskin had asked that Senior U.S. District Judge David Hittner be removed from the case and it be moved to U.S. District Judge Vanessa Gilmore, who drew the first case against one of Stanford's codefendants. Stanford and others are accused of bilking investors in a $7 billion fraud.
“We're disappointed in the result but hopeful that Mr. Stanford will ultimately be permitted to be represented by counsel of his choice,” Luskin said Tuesday.
Luskin and Sydow argued Hittner exhibited “unexplained hostility” in refusing Sydow's request to make an appearance and in ordering that Sydow have no further involvement in the criminal case.
Sydow asked the court to consider him Stanford's lawyer for the limited purpose of receiving notices on a motion filed by Luskin's firm, Patton Boggs, which wants assurance it will be paid before it agrees to represent Stanford.
Houston criminal defense lawyer Dick DeGuerin has asked to be released from the case but Hittner has required DeGuerin stay on until another lawyer enters unconditionally on Stanford's behalf.
Today's appellate ruling came just hours after prosecutors Gregg Costa and Paul Pelletier asked the court to deny Stanford's request to move the case. They said the request for appellate intervention was premature and that allowing attorneys into the case conditionally would cause delay.
The prosecutors said Hittner did not display bias against Sydow and that the matter of fees could be resolved in other courts.
Stanford has not been able to pay his lawyers because his personal assets were frozen along with his company's assets in a civil suit filed in Dallas by the Securities and Exchange Commission. Attorneys for several Stanford-related entities and individuals are attempting to be paid through unfrozen assets or an insurance policy.