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Stanford, 5 Associates Charged With Running $7 Billion Ponzi Scheme
In outlining its case, the Justice Department filed criminal charges against King and several of Stanford's employees, including Laura Pendergest-Holt, the chief investment officer; Gilberto Lopez, the chief accounting officer; and Mark Kuhrt, the global controller.
They are charged with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud; 10 counts of mail fraud; and one count of conspiracy to commit money laundering. Stanford, Pendergest-Holt and King also face charges of conspiring to obstruct an SEC proceeding.
James M. Davis, the company's chief financial officer, faces separate criminal charges, including conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct an SEC investigation. Another employee, Bruce Perraud, was charged with destruction of records related to a federal investigation.
Prosecutors have "worked tirelessly to build an impressive criminal case from the rubble of this massive fraud," said Robert Khuzami, SEC enforcement director, at a news conference in Washington.
An attorney for Davis said his client was cooperating with the investigation.
"He realizes that a lot of good people have been hurt by what happened at Stanford Financial. And at Allen Stanford's trial, the jury and the entire world will see that the orchestrated and prime beneficiary of the Stanford fraud was Sir Allen Stanford himself," said the attorney, David Finn.
Lopez and Kuhrt were still obtaining attorneys. It could not be determined who was representing King or Perraud. A lawyer for Pendergest-Holt did not respond to an e-mail or phone call.
Goldfarb reported from Washington; Kumar from Richmond.