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Financier Allen Stanford denies fraud as trial begins | Financier Allen Stanford denies fraud as trial begins |
(about 4 hours later) | |
A Texas financier has pleaded not guilty to 14 counts of fraud and money laundering on the first day of his trial in Houston, Texas. | A Texas financier has pleaded not guilty to 14 counts of fraud and money laundering on the first day of his trial in Houston, Texas. |
Allen Stanford is accused of defrauding investors of $7bn (£4.5bn) through a Ponzi scheme out of his bank in the Caribbean island of Antigua. | Allen Stanford is accused of defrauding investors of $7bn (£4.5bn) through a Ponzi scheme out of his bank in the Caribbean island of Antigua. |
But his defence team says that the 61-year-old never intended to defraud anyone. | But his defence team says that the 61-year-old never intended to defraud anyone. |
If convicted, Mr Stanford could be sentenced to up to 20 years in prison. | If convicted, Mr Stanford could be sentenced to up to 20 years in prison. |
It is alleged that Mr Stanford used his investors' funds to fuel an extravagant lifestyle that included owning houses and yachts, and sponsoring cricket matches. | It is alleged that Mr Stanford used his investors' funds to fuel an extravagant lifestyle that included owning houses and yachts, and sponsoring cricket matches. |
Prosecutors say Stanford International Bank used the money raised from selling fraudulent certificates of deposit to pay off maturing contracts, and to support Mr Stanford's other business ventures. | Prosecutors say Stanford International Bank used the money raised from selling fraudulent certificates of deposit to pay off maturing contracts, and to support Mr Stanford's other business ventures. |
Among them were other banks, a brokerage that sold the certificates of deposit, an airline, cricket grounds and restaurants. | Among them were other banks, a brokerage that sold the certificates of deposit, an airline, cricket grounds and restaurants. |
Prosecutors also say that Mr Stanford, as well as three of his former executives, fabricated company documents and bribed officials in Antigua to cover up their illegal activities. | Prosecutors also say that Mr Stanford, as well as three of his former executives, fabricated company documents and bribed officials in Antigua to cover up their illegal activities. |
But Mr Stanford, who once had an estimated net worth of more than $2bn, argues that his businesses were legal. | But Mr Stanford, who once had an estimated net worth of more than $2bn, argues that his businesses were legal. |
His defence lawyers - the fifth legal team to represent him since he was indicted - say that Mr Stanford's investors would have been paid if his companies had not been seized by the authorities. | His defence lawyers - the fifth legal team to represent him since he was indicted - say that Mr Stanford's investors would have been paid if his companies had not been seized by the authorities. |
They say investors only lost their money once the US government seized his businesses, destroying their value. | They say investors only lost their money once the US government seized his businesses, destroying their value. |
He has been held in custody for two and a half years because of fears he would attempt to flee. The trial is expected to last around six weeks. | He has been held in custody for two and a half years because of fears he would attempt to flee. The trial is expected to last around six weeks. |
Three other former executives are also awaiting trial in Antigua and face charges from the US Securities and Exchange Commission in Dallas, Texas. | Three other former executives are also awaiting trial in Antigua and face charges from the US Securities and Exchange Commission in Dallas, Texas. |
Mr Stanford once landed in a helicopter at Lord's cricket ground in London and secured a lucrative series of matches between the England team and his Stanford superstars. | Mr Stanford once landed in a helicopter at Lord's cricket ground in London and secured a lucrative series of matches between the England team and his Stanford superstars. |
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