Lawyer: Stanford Number 2 Helping To Probe Billionaire’s Money Trail

April 6, 2009 9:44 a.m.
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The walls around Allen Stanford appear to be closing in ever tighter.

David Finn, a lawyer for Jim Davis, the number 2 man at Stanford Financial, tells Bloomberg that Davis is helping investigators track Stanford’s European assets, focusing on Swiss banks.

In addition to potentially helping to build a criminal case against Stanford, tracking the assets could help repay victims of Stanford’s alleged fraud.“Jim Davis is helping them follow the money trail, because it’s going to lead straight to Allen Stanford’s doorstep,” said Finn.

Stanford, Davis, and a third Stanford Financial employee, Laura Pendergest-Holt, have been charged by the SEC in a civil complaint with running a “massive, ongoing fraud” in connection with the alleged scheme.

Finn added that Davis earned $4 million to $5 million during 10 years as Stanford’s second in command, while Stanford, who was Davis’ college roommate, skimmed $1.6 billion in personal loans from the firm. “So when the government finds out where the money went, and whose pocket or pockets it went into, the difference between Davis and Stanford will become crystal clear,” Finn said.

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