Could Stanford spend a year in jail before trial?

Lita Epstein

Jul 1st 2009 at 11:00AM

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R. Allen Stanford could spend a year in jail after U.S. District Judge David Hittner revoked his bail because he believes Stanford is a flight risk. While his trial is scheduled for August 25, his attorney believes it will take a year to prepare for trial. That means, if his attorney is not successful with his appeal of Hittner's bond ruling to the U.S. Court of Appeals for the Fifth Circuit in New Orleans, Stanford would have to await trial in jail.

U.S. Magistrate Frances Stacy had granted Stanford $500,000 bail with a GPS monitoring device and home detention, based on a plea from Stanford's attorney that he was penniless. Hittner didn't buy that plea. Do you really believe an attorney would appeal bail hearings to the circuit court level if his client truly was penniless? I doubt he would spend that much time on bail hearings if he didn't think he would get paid.

Federal prosecutors didn't buy the penniless line and appealed to Hittner to revoke the bail. Hittner agreed and said in his ruling, "Stanford is a serious flight risk and there is no condition or combination of conditions of pretrial release that will reasonably assure his appearance as required for trial."

Stanford is accused of masterminding a $7 billion Ponzi scheme and misusing most of the funds. Three other executives of the now-defunct Houston-based Stanford Financial Group also face charges.

In making the case that Stanford is a flight risk, prosecutors pointed to:

testimony from a pilot who flew Stanford to Libya and Switzerland before government officials raided his Houston offices.

testimony from a friend of Stanford's daughter who gave him $36,000 for an apartment rental.

an auditor's claim that $100 million was withdrawn from a Swiss bank account Stanford controlled.

a friend who recently got an Antigua passport for him.

British authorities have frozen $100 million in assets linked to Stanford held in London financial institutions. The funds were frozen by the Serious Fraud Office in London in April, but kept secret until after his arrest.

Stanford holds both U.S. and Antigua citizenship. Prosecutors believe his international network of wealthy acquaintances and the possibility that he has wealth hidden around the world makes him a serious flight risk.

Would you give Stanford the option of bail?

Lita Epstein has written more than 25 books including Reading Financial Reports for Dummies.

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Reader Comments (Page 1 of 1)

7-01-2009 @ 12:27PM

Mozelle said...

He does not deserve bail in my opinion. However, what he and Bernie and Ken did is no different than what other CEO's did back during the 2000 stock market crash. AOL falsified their income and so did Enron and many others. My Aol stock went from 40.00 to 4.00 and finally after a class-action lawsuit I settled for 10 cents on the dollar. I lost my retirement back then, and no one from AOL or those other crooked companies went to prison. That's just how it goes. Today, retired, instead of riding around in my RV I could have bought I make Macrame Plant Hangers using clay beads that I sell on eBay. My retirement dream of traveling in an RV was shattered by people like Stanford, Bernie, and Ken...Oh, and Henry who told people to buy stock when he and his croonies were selling the stock! Crooks are everywhere in this country! I just wish one good hearted generous crook would send me part of what I lost....I still want that little RV, lol....about $40,000.00 will do it...send money to..paypal...ohringen@aol.com

7-01-2009 @ 3:07PM

G Burnett said...

He is responsible for ruining the lives of honest, hard working people, who saved all of their lives looking forward to retirement, but now, because of his greed, will barely be able to eke out a miserable existence. Why would anyone take pity on him? What pity has he shown others?

7-01-2009 @ 1:02PM

Martha said...

They should throw the book at him and put him in the same cell with Madoff. How can anyone have sympathy for these men who believe they are above the law. I don't know how many people were swindled by this crook, but I have no mercy for his premeditated acts of greed. Throw the book then get rid of the key on this guy.

7-01-2009 @ 1:51PM

Johannes said...

Mr. Stamford deserve to eventually accompany Bernie Madoff in the same cell . Perhaps both of them could cut a deal ( but remain in prison for life ) and show the U.S. Govt. as to how Obama can re-coop all his wasted bail out money. If anybody knows how to scam -- its these 2 crooks !

7-01-2009 @ 3:04PM

Janice Calhoun said...

Should this smuck get bail,,,,he fly like a bird,,,,the chicken shit kind..

7-01-2009 @ 3:11PM

Jim said...

Honestly, people who knowingly defraud and cause investors to lose their life savings such as using the Ponzi scheme should be HANGED. This also includes Mister Madoff. These people have ruined many lives. In other parts of the world they would be executed.

7-01-2009 @ 1:36PM

natezim said...

This POS is in the same league as Madoff. I would most assuredly make it impossible for him to flee, which I believe he would! Keep him locked up!

7-01-2009 @ 1:48PM

Henry said...

Allow bail? No. Now that the economy has tanked the creatures are crawling from under the rocks.

7-01-2009 @ 2:46PM

FLLady said...

For Madoffs, Stanfords & the like, 150 years in prison when your 70 doesn't mean much. I say take everything they own at the time of arrest, business & personal. If it was us, we wouldn't have access to our money & we know it.. If your in jail, it all doesn't much matter. As restitution, have an exclusive auction to the highest bidders & split the money among investors. AND give these victims a impact panel where these cowards have to sit & listen to their accusers..real time. Demand answers & get them..under oath. Justice served?

7-02-2009 @ 3:47AM

non ya business said...

this POS need's to be locked up and forgot about..... just the way he forgot about all the people dreams he stole along with there cash.... and let me get this straight..... he is only getting a year for 7 million in fraud?!?!?! for christ sakes am i in the wrong business....

7-03-2009 @ 5:19PM

George said...

First of all, he's not getting only a year in jail. It says that he will spend a year in jail waiting to go to trial.
Second, it's not 7 Million. Read the story again. It says 7 Billion!

7-01-2009 @ 3:14PM

Martin said...

I am sure this is the tip of the ICE BERG And probley not the last one they will arrest.

7-02-2009 @ 12:05AM

Mitchell said...

Jail time might do him some good, or an Hosp.He just can't seem to get enought of his affair.What would help instantly, is an piece duck-tape on his mouth.

7-02-2009 @ 1:36AM

Marolie said...

I wonder if the other cellmates have to call him SIR. ALLEN STANFORD in jail. He is younger than Madoff, so they should give him 250 years in jail.

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