James Davis, the chief financial officer at the Stanford Financial Group, on Thursday pleaded guilty to charges that he helped Sir Allen Stanford, the company??s founder, in an alleged $7bn Ponzi scheme.
Mr Davis, 60, who appeared at the US district court in Houston as part of a plea agreement with the authorities, was subdued as he pleaded ??guilty, your honour? to three felony counts, including fraud and obstruction of justice, for which he could face a maximum prison term of 30 years. He also agreed to forfeit $1bn.
Prosecutors in June accused Sir Allen, Mr Davis and Laura Pendergest-Holt, Stanford??s chief investment officer, of pledging high rates of return on $7bn of certificates of deposit issued by Stanford International Bank, and then allegedly misappropriating most of the funds.
