Thursday, August 27, 2009

Davis Pleads Guilty in Stanford Bank Case

James Davis, former CFO of Stanford Bank, pleaded guilty to three counts of fraud and conspiracy in connection with the meltdown of the bank. Davis faces a maximum of 30 years in prison, though his sentence will likely be significantly impacted by his cooperation with the government in the case against Allen Stanford.

Here is a portion of a story of the plea from the Houston Chronicle.

On the day his one-time boss was hospitalized, former Stanford Financial Group executive James Davis pleaded guilty today to three fraud and conspiracy counts for his role in an alleged $7 billion fraud.

R. Allen Stanford, set to appear in court on a different matter, did not make the trip to the Houston federal courthouse from a Conroe jail cell. U.S. District Judge David Hittner said Stanford was found to have an irregular heartbeat and extremely high blood pressure around 5:30 a.m. and was taken to a Conroe hospital for evaluation.

Davis' plea agreement has been expected since his attorney said Davis has been cooperating with investigators since March. The sentencing of Stanford's former chief financial officer will come at another date, but legal experts have speculated he may face many years behind bars given the number of charges. Hittner accepted the plea, which also calls for Davis to forfeit about $1 billion, and set a Nov. 20 sentencing date. Victims of the Stanford Financial Group's collapse last year will get a chance to
address Davis at that hearing. After today's hearing, Davis was
contrite in a brief statement to reporters.

"I apologize and take responsibility for my actions," he said. His attorney said Davis is currently earning about $10 an hour by laboring on a family farm in Michigan.

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