Stanford Bail Revoked, Assets Frozen In London

Jul 1 2009 | 12:54pm ET

Texas fund of hedge funds manager, financier and accused Ponzi schemer R. Allen Stanford isn’t going anywhere. A federal judge in Houston yesterday revoked Stanford’s bail and ordered him held pending trial for allegedly ripping investors off to the tune of $7 billion.

U.S. District Judge David Hittner overturned a magistrate judge’s decision last week to allow Stanford to be freed on $500,000 bond. Hittner said that Stanford, who is a dual U.S.-Antiguan citizen, is a flight risk.

“The court determines that 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,” Hittner wrote.

Stanford has been jailed since his arrest in Virginia on June 18. He was indicted on fraud and obstruction of justice charges earlier this month, four months after the Securities and Exchange Commission charged him with fraud. Stanford has pleaded not guilty to the charges, and denied any wrongdoing.

Meanwhile, British authorities have frozen some US$100 million in Stanford assets believed to be held in London. The Serious Fraud Office obtained the restraining order at the request of the U.S. Department of Justice on April 7.


In Depth

Dillon Eustace: The Advantages of ICAVs

Feb 11 2016 | 7:51pm ET

As the growth of alternative investment vehicles continues, global asset managers...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedging Against Reputational Risk in the 21st Century

Feb 12 2016 | 7:18pm ET

For investors, the first step in researching a new fund or manager is to google...