Accused Swindler Stanford to Stay Behind Bars Pending Trial

A day after Bernard Madoff was sent to prison for 150 years for masterminding the largest financial con job in Wall Street history, another accused swinder was ordered to remain behind bars pending his trial.

Allen Stanford, president of Stanford Financial Group, was indicted earlier this month on charges he and his top corporate officers bilked investors out of about $7 billion through the fraudulent sale of certificates of deposit in his Antigua-based Stanford International Bank.

The investments, which promised unreasonably high interest rate returns, were part of a massive Ponzi scheme targeting thousands of investors around the world, prosecutors allege. Stanford and others are accused of trying to cover their tracks by lying to investors, creating fictitious accounting records, and bribing an Antigua banking regulatory official to turn a blind eye to their conduct.

Stanford turned himself in to authorities on June 18 and has vowed to fight the charges, saying he has done nothing wrong.

No-Bail Order Entered

Today, a federal judge ordered the flamboyant Texas billionaire and international financier to remain locked in a Houston jail pending trial on the 21 criminal charges. The judge revoked a $500,000 bond another court had granted to Stanford.

Stanford’s attorney said he was disappointed with the judge’s no-bail order and said he planned an appeal to the Fifth Circuit Court of appeals seeking to reverse the decision.

Madoff was sentenced after admitting he orchestrating a $65 billion scam in which he stole money from unknowingly clients for nearly 20 years. His scheme was called the largest such scam in Wall Street history.

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