Former Stanford chief financial officer Davis to make 1st court appearance in $7B scheme

Stanford exec to appear in court

HOUSTON — The former top finance officer of indicted Texas financier R. Allen Stanford’s business empire is set to make his first court appearance after being charged with helping to swindle investors out of $7 billion.

James M. Davis was expected Monday to plead not guilty to three charges. But his attorney says the Stanford Financial Group’s ex-chief financial officer will later change his plea to guilty as part of an agreement with prosecutors.

Sixty-year-old Davis is charged with conspiracy to commit mail, wire and securities fraud, mail fraud, and conspiracy to obstruct a Securities and Exchange Commission investigation.

Prosecutors say Davis, along with Stanford and the other executives, conspired to defraud investors by misrepresenting the bank’s financial condition, its investment strategy and how it was regulated. Stanford has pleaded not guilty.


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