Texas Tycoon Allen Stanford Gets 110 Years for $7B Swindle

Texas Tycoon Allen Stanford Gets 110 Years for $7B Swindle

Former jet-setting Texas tycoon R. Allen Stanford, whose financial empire once spanned the Americas, was sentenced Thursday to 110 years in prison for bilking investors out of more than $7 billion over 20 years in one of the largest Ponzi schemes in U.S. history.

U.S. District Judge David Hittner handed down the sentence during a court hearing in which two people spoke on behalf of Stanford's investors about how his fraud had affected their lives.

Prosecutors had asked that Stanford be sentenced to 230 years in prison, the maximum sentence possible after a jury convicted the one-time billionaire in March on 13 of 14 fraud-related counts. Stanford's convictions on conspiracy, wire and mail fraud charges followed a seven-week trial.

Stanford's attorneys had asked for a maximum of 41 months, a sentence he could have completed within about five months because he has been jailed since his arrest in June 2009.

During Thursday's sentencing hearing, Stanford denied all allegations. Speaking for more than 40 minutes, Stanford said he was a scapegoat and blamed the federal government and a U.S.-appointed receiver who took over his companies for tearing down his business empire and preventing his investors from getting any of their money back.

"I'm not here to ask for sympathy or forgiveness or to throw myself at your mercy," Stanford told Hittner. "I did not run a Ponzi scheme. I didn't defraud anybody."

Stanford was once considered one of the richest men in the U.S., with an estimated net worth of more than $2 billion. His financial empire stretched from the U.S. to Latin America and the Caribbean. But after his arrest, all of his assets were seized and he had to rely on court-appointed attorneys to defend him.

Defense attorneys portrayed Stanford, 62, as a visionary entrepreneur who made money for investors and conducted legitimate business deals. They accused the prosecution's star witness – James M. Davis, the former chief financial officer for Stanford's various companies – of being behind the fraud and tried to discredit him by calling him a liar and tax cheat.

Posted by James Fried on Friday June 15 2012, 2:37 AM EST. Ref: Google. All trademarks acknowledged. Filed under Featured News, Nation. Comments and Trackbacks closed. Follow responses: RSS 2.0