Stanford, On Brink Of Physical, Mental Collapse, Seeks Bail

Dec 23 2009 | 9:10am ET

Accused Ponzi schemer R. Allen Stanford could suffer “a complete nervous breakdown” if his bid to be released on bail is rejected, a psychiatrist said.

Stanford’s lawyers included the grim assessment in their latest bid to get their client out of jail after more than six months. In documents filed with the federal court in Houston, attorneys for the Texas billionaire and fund of hedge funds manager say his mental and physical health have badly deteriorated in prison, and that his incarceration makes it impossible for them to properly prepare for trial. Stanford has lost 40 pounds over the past three months.

Stanford has proclaimed his innocence of allegations that he ran a $7 billion Ponzi scheme.

The defendant’s team also marshaled statements from his family assuring that the 59-year-old is not a flight risk in their effort to overturn an earlier ruling that he is.

“I can guarantee you that my dad will go nowhere if released on bail,” one of this sons wrote. “He knows that running would get him nowhere, it would only make things worse.”

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