Accused Ponzi schemer Allen Stanford is going to have to get use to prison garb and grub as he awaits his trial. A federal judge revoked Tuesday the $500,000 bond for the Texas billionaire accused of masterminding a $7 billion fraud.
A federal magistrate had set bail last week, but federal prosecutors immediately challenged it, saying Stanford was a flight risk. Stanford was charged two weeks ago with operating a multibillion Ponzi scheme that defrauded about 30,000 investors who thought they were investing in safe certificates of deposit from the Stanford International Bank based on the Caribbean island of Antigua.
Senior U.S. District Judge David Hittner agreed with prosecutors.
In making his case for revoking bail, Assistant United States Attorney Gregg Costa argued in court on Monday that Stanford hadn't lived in the U.S. for 15 years, has extensive international contacts, held Antiguan citizenship and had shown a willingness to bribe foreign officials.
Stanford's lawyer, Dick DeGuerin, said his client could have fled before he was indicted and had even attempted to surrender voluntarily before his indictment. He also said his client is penniless.
According to The New York Times, DeGuerin said immediately after the ruling: "We're going to appeal."
Stanford and five others, including a former top regulator in Antigua and Barbuda, are charged in the alleged scheme. The other defendants are free pending trial. - Donna Block
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