Financier Stanford Indicted in $7B Scam After Surrender

Updated: R. Allen Stanford, the man at the center of an $7 billion fraud investigation involving sales of certificates of deposit, was indicted on fraud charges this afternoon along with four associates.

The Washington Post reports that the Justice Department is seeking up to 250 years in prison for Stanford and opposing bail. Also indicted are Laura Pendergest-Holt, Stanford Financial Group's chief investment officer; Gilberto Lopez, chief accounting officer; Mark Khurt, global controller; and Leroy King, the former administrator and CEO of Antigua's Financial Services Regulatory Commission.

Stanford surrendered to federal custody this morning. And he did it with his lawyer advising him all along the way.

According to the Post, FBI agents were waiting outside his girlfriend's house in Fredericksburg, Va.

"Federal agents in black SUVs surrounded his girlfriend's house this afternoon, and just sat there," Stanford's lawyer Dick DeGuerin is quoted saying. "I told him to walk out and introduce himself. So he did, and he asked them, 'If you've got a warrant, take me into custody. If you don't, I'm going to Houston.' And they did, so they arrested him."

Stanford was set to appear in federal court this morning in Richmond. A sealed indictment against the 59-year-old Texas financier was returned by a grand jury yesterday.

DeGuerin told the Houston Chronicle that Stanford has been ready to surrender for months.

"I’ve been asking the prosecutors to allow Mr. Stanford to surrender if and when there in an indictment. He’s not going to run. He’s available and willing," DeGuerin said.

Also see:

ABAJournal.com: "Financier Allen Stanford Hires Maritime Lawyers for Investment Fraud Case"

ABAJournal.com: "Stanford Lawyer Hits SEC 'Storm Troopers,' Says His Client is No Madoff"

Updated at 4:02 p.m. to reflect that Stanford was indicted in a $7 billion scam.