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Stanford Found Guilty Of $7B Ponzi Scheme

Texas financier R. Allen Stanford was convicted on Tuesday on 13 of 14 counts of fraud in connection with a $7 billion Ponzi scheme.

Three years had elapsed between Stanford’s being accused of the hedge fund fraud—which involved 30,000 investors in 113 countries—and Today’s decision. The trial was delayed because Stanford was beaten severely in a prison fight in 2010 after which he became addicted to prescription anti-stress drugs. He was subject to a year of therapy before being declared fit for trial, over the defense’s objections that he had lost much of his memory and could not defend himself.

Stanford had pled not guilty to all 14 counts, which included conspiracy, mail fraud, wire fraud and obstruction of a Securities and Exchange Commission investigation. He was convicted of all but one wire fraud charge in the trial, which took place in Houston and lasted six weeks.

The eight-man, four-woman jury had appeared to be deadlocked on Monday, when they’d sent a note to Judge David Hittner saying they were unable to reach unanimous agreement on all 14 counts. Hittner instructed them to continue their deliberations.

Read full story on Finalternatives

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