Stanford indicted for alleged Ponzi scheme

WASHINGTON — Texas billionaire R. Allen Stanford, whose sprawling banking empire collapsed this year, has been indicted for what prosecutors say is a $7 billion scheme to defraud investors.

Justice Department officials planned to announce the charges against Stanford, who ran Stanford Financial Group, and six others at a news conference Friday. Also indicted were three executives of the company and a former Antiguan bank regulator.

The Securities and Exchange Commission has filed court papers charging that Stanford and top executives orchestrated a massive fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.

Stanford, in FBI custody after surrendering Thursday, was to appear in federal court in Richmond, Va. later Friday. He has denied the charges.

The others indicted Friday were Stanford executives Laura Pengergest-Holt, Gilberto Lopez and Mark Kuhrt. A separate indictment unsealed in Florida accuses a fourth Stanford worker, Bruce Perraud, of destroying records important to the investigation.

Prosecutors charged Leroy King, the former chief executive officer of Antigua’s Financial Services Regulatory Commission, with conspiracy to obstruct an SEC investigation.

Criminal charges were filed against James Davis, chief financial officer for Stanford Financial Group.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WASHINGTON (AP) — Texas billionaire R. Allen Stanford has been indicted for what prosecutors say is a $7 billion scheme to defraud investors.

Justice Department officials are to announce the charges against Stanford and four others at a news conference in Washington Friday.

Stanford ran the Stanford Financial Group, a sprawling banking empire that collapsed earlier this year.

Also indicted were three executives of the company, and a former Antiguan bank regulator.

The Securities and Exchange Commission has already filed court papers charging Stanford and his top executives orchestrated an $8 billion fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.

Stanford, who is in FBI custody after surrendering Thursday, was to appear in federal court in Richmond, Va. later Friday.

He has denied the charges.