CaribWorldNews, HOUSTON, Texas, Fri. Aug. 27, 2010: Accused Ponzi schemer, Texas-born former Antigua and Barbuda resident, R. Allen Stanford, did not loan clients money to himself.
That`s the word from his attorneys, who made the argument in court Thursday as they tried to shoot down claims made by a fraud examiner, who testified that Stanford used $1.7 billion in deposits made to his now defunct Caribbean bank as personal loans.
Stanford`s financial dealings were being examined during a court hearing Thursday in which a federal judge was to decide if Stanford and two ex-executives of his now defunct companies will continue having their legal bills paid for by an insurance policy.
Legal bills continue to be at issue in the court hearing involving the jailed Texan financier Allen Stanford.
Stanford and the three other employees – Laura Pendergest-Holt, chief accountant Gil Lopez and global controller Mark Kuhrt – are fighting charges they bilked investors out of $7 billion in a massive Ponzi scheme.
A Texas judge is trying to resolve who will pay the bills for Stanford and three of his former company executives, who have racked up millions of dollars in fees as they defend themselves against fraud charges.
An insurance policy has so far covered their legal bills. But the insurer, Lloyd`s of London, is trying to turn off the financial tap by having the policy voided. Stanford and the former executives, including Pendergest-Holt, have sued Lloyd`s.
A fifth defendant, former Antiguan banking regulator Leroy King, is fighting extradition.