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Man Accused of Massive Ponzi Scheme to Remain in Jail to Await Trial

R. Allen Stanford, former Texas financier, tried to post bond and be released from jail while awaiting trial, but was refused by a federal appeals court.  Stanford has been accused of a massive Ponzi scheme, which he was arrested for in 2009.  He was charged by the SEC with “massive ongoing fraud” that involved a total of about $8 billion in certificates of deposits.  His company, Stanford Financial Group, is accused of being a front for his Ponzi scheme, allowing him to misappropriate the money given to him by investors.

Stanford’s trial date was originally set for January 2011, but due to health problems it has been delayed until a later court appointed date.  Psychiatrists examined him and said that he has been suffering with delirium associated with an addiction to a strong medication he has been taking for anxiety, and has suffered an injury to his brain after being beaten by a prison inmate in 2009, which would make him incompetent to stand trial.

There have been 21 counts of money laundering, fraud, and obstruction charged against Stanford, although he has pled not guilty to all of them.  If he is convicted, he could face up to 375 years in jail.  He is currently awaiting his trial at the Federal Detention Center in Houston.

Andrew Ostler: I started working for The Employment Research Institute in 2008, and currently work as a content manager, writer, and editor for LawCrossing, EmploymentCrossing, and several of the company blogs, including JD Journal. I am also responsible for writing/editing many of the company emails for The Employment Research Institute.