Victims of Stanford fraud to be heard

Court Alerts

Individuals who believe they are victims of an alleged $7 billion fraud that prosecutors say was perpetrated by Texas financier R. Allen Stanford's business empire will have a chance to tell their stories at a court hearing next month, a judge ruled Tuesday.

U.S. District Judge David Hittner issued an order saying he will allow the "thousands of potential victims throughout the world" to speak to the court or submit written statements before he accepts a plea agreement in the case between prosecutors and James M. Davis, the ex-chief financial officer of Houston-based Stanford Financial Group.

Davis pleaded not guilty during his arraignment Monday to conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct a Securities and Exchange Commission investigation.

But his attorney has said the former Stanford finance chief will plead guilty to these charges during a court hearing Aug. 6.

Davis was charged last month as part of the federal government's criminal case against Stanford and executives Laura Pendergest-Holt, Gilberto Lopez and Mark Kuhrt.

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