As accused Ponzi schemer R. Allen Stanford sits in jail, his criminal defense attorney Dick DeGuerin is heading for the exits. DeGuerin no longer wants to represent Stanford because he doesn't know if he will get paid. The court, though, is insisting that he stay on until someone else can be found.
That, however, may be difficult. According to
Texas Lawyer, Stanford's new legal team hasn't filed papers to substitute into Stanford's criminal case, because they too want assurances they will be paid.
Stanford has been in custody since June, after he pleaded not guilty to fraud and conspiracy charges related to an alleged conspiracy to defraud investors who bought about $7 billion in certificates of deposit sold through Stanford International Bank Ltd.
Stanford filed a motion on Aug. 4 asking U.S. District Judge David Hittner of the Southern District of Texas to allow Patton Boggs and Houston firm Sydow & McDonald to appear as his counsel in his criminal case for the limited purpose of "resolving whether Mr. Stanford will be granted access to monies to pay for his legal fees and expenses."
He's reportedly asked for $10 million to pay for his defense, but the feds feel that is way too much -- plus, his victims may rightfully be entitled to the money.
Stanford will probably be allotted a modest amount of cash to hire an attorney, but he's unlikely to be able to retain the high-profile legal teams he's hoping for, experts say.
Patton Bogg's Robert Luskin told Texas Lawyer: "We are obviously trying to tee this up in a way that will encourage the court to help us ensure that his counsel is paid and will have the resources to continue on. Obviously we would like to get paid, and that's how we all eat and feed our families."
Meanwhile Michael Sydow, a partner in Sydow & McDonald, won't be involved. On Aug. 6, Hittner signed an order striking Sydow's notice of appearance from the record because Sydow didn't seek prior approval from him to enter an appearance. "It is further ordered that Michael D. Sydow shall have no further involvement in the court proceedings in the case," Hittner wrote. -
Donna Block
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