R. Allen Stanford Hospitalized

August 27. 2009

R. Allen Stanford

It seems the news that his chief financial officer, James M. Davis, flipped and took a plea deal from the government, was too much for fraudulent financier R. Allen Stanford to take and he was hospitalized with an irregular heartbeat and elevated pulse.

I'm sure some of his fleeced investors developed an irregular heartbeat and elevated pulse as well, when they learned he stole their life savings, squandering it on living lavishly.

Accused financier Stanford hospitalized

HOUSTON — Texas financier R. Allen Stanford, jailed on charges of bilking investors out of $7 billion, was hospitalized Thursday with an irregular heartbeat and high pulse, just hours before his ex-finance chief became the first person to plead guilty in the case.

Stanford was set to appear in a Houston federal courtroom for a hearing on whether he can get a new attorney. His current lawyer, Dick DeGuerin, has asked for permission to quit the case because he doesn't have assurances he will be paid. DeGuerin said he didn't know what Stanford's medical condition was.

In the same courtroom, Stanford's former chief financial officer, James M. Davis, pleaded guilty Thursday to three counts: conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct a Securities and Exchange Commission investigation.

"I did wrong. I'm sorry. I apologize. I take responsibility for my actions," Davis, 60, said as he left the federal courthouse after his hearing.

Davis' attorney David Finn said his client has been cooperating with prosecutors for the last six months and the guilty plea is part of a deal with the Justice Department in exchange for a possible reduced sentence.

Davis faces up to 30 years in prison when he is sentenced. While a sentencing date of Nov. 20 was set, Finn said he believes that will be delayed.

As part of his plea agreement, Davis was also ordered to forfeit $1 billion in proceeds he made from his illegal actions...

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