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Sunday's Child - Nikolas
Ex-Stanford Executive Gets 5 Years in $7B Swindle 1/23/13
Associated Press
January 23, 2013
HOUSTON - A judge has sentenced the star prosecution witness in the
trial of convicted Texas financier R. Allen Stanford to 5 years in prison for
bilking investors out of more than $7 billion in one of the biggest Ponzi
schemes in U.S. history.
James M. Davis was sentenced in Houston federal court Tuesday. He had faced
up to 30 years in prison after pleading guilty in 2009 to three fraud and
conspiracy charges.
Prosecutors say Stanford persuaded investors to buy certificates of deposit
from his Caribbean bank, then used that money to bankroll a string of failed
businesses and his own lavish lifestyle.
Davis is the former finance chief for Stanford's various companies. He
testified that he and Stanford faked the bank's profits and fabricated documents
to hide the fraud.