Allen Stanford is trying to get Judge Hittner’s Pretrial Detention Order reversed in the Fifth Circuit. Here is Stanford’s Reply (to the Government’s Response), filed last week.
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Mary Flood of the Houston Chronicle has an excellent piece here on the efforts of Allen Stanford’s current and future criminal defense attorneys to get paid. Dick DeGuerin wants out, not having seen any money since March, but U.S. District Judge David Hittner will not allow it until a replacement comes in “unconditionally.” Such a ruling looks abusive to me this early in the proceedings. Bob Luskin wants to represent Stanford, but will not come in under Judge Hittner’s conditions unless payment is assured. Luskin’s problem is that Stanford’s assets have been frozen by a different federal judge out of Dallas in the SEC civil action. Stanford’s D&O carrier was purportedly willing to pay defense costs until the court-appointed receiver in the Dallas action announced that the policy proceeds were part of Stanford’s frozen assets and could not be released. Co-defendant Laura Pendergest-Holt and the other co-defendants could also pay their lawyers out of the D&O proceeds. Dan Cogdell, Pendergest-Holt’s criminal defense attorney says: “It couldn’t be more obvious that we’re entitled to be paid.” Undoubtedly he is correct. D&O Policies are purchased precisely for this reason. It just goes to show you something they never teach in law school. Insurance rules the business world. Meanwhile, Stanford and the DOJ are battling over Judge Hittner’s detention order in the Fifth Circuit. The order should be overturned–but don’t bet too much money on it in the Fifth Circuit.
CNBC reports here that Patton & Boggs’ ace DC white collar man, Bob Luskin, has replaced Houston’s Dick DeGuerin as Allen Stanford’s lead criminal attorney. DeGuerin could not get frozen funds released for Stanford’s defense and apparently was not sufficiently satisfied of future payment. CNBC says that DeGuerin has been working without pay since March. Pending at the Fifth Circuit is Stanford’s motion to vacate Judge Hittner’s draconian pretrial detention order.
Here is the Order, straight from PACER.
The Washington Post carries the Reuters story here. U.S. District Judge Hittner heard arguments today on the government’s appeal of U.S. Magistrate Judge Stacy’s jaw-droppingly low bond setting.
The Houston Chronicle’s Kristen Hays and Tom Fowler report here on the latest moves in the Allen Stanford prosecution. On Friday, Senior U.S. District Judge David Hittner granted a stay (pending appeal) of U.S. Magistrate Judge Frances Stacy’s surprisingly low bail setting ($500,000.00 with a $100,000.00 cash bond). Hittner will apparently hear the matter on Monday morning. Prosecutors are entitled to appeal such determinations to the district court.
Mary Flood and Tom Fowler of the Houston Chronicle report here on the latest developments.
Sir Allen “no relation to Leland” Stanford has turned himself in to the FBI, according to his lawyer, Dick DeGuerin, and this ABC News.com piece. Sealed indictments were returned in the case earlier today in Houston. Stay tuned.
The Houston Chronicle reports here that Virginia based law firm Hunton & Williams has agreed to turn over some records to Stanford receiver Ralph Janvey, but not all. Specifically, Hunton & Williams declined to turn over records related to its representation of Stanford’s non-U.S. businesses (including Stanford International Bank) and Allen Stanford individually. Janvey wants them all and has asked U.S. Dsitrict Judge David Godbey for an order to that effect.
According to his attorney David Finn, Stanford CFO and number two man James M. Davis is now cooperating with both the SEC and DOJ investigations. NPR.org has the report here. The story does not indicate whether Davis’ co-operation is taking the form of personal interviews or some type of attorney proffer. The difference may be significant. Finn is quoted as saying that Davis has not been promised leniency and that there will be a time and place to answer questions relating to allegations of Davis’ involvement in a fraud. This may mean that for now Davis is only answering, directly or indirectly, rather detailed factual questions related to the whereabouts of assets. At any rate, it is always dangerous for those with criminal exposure to talk to the government unprotected, whether the discussions are informal or under oath. Laura Pendergest-Holt found this out the hard way.
The Houston Chronicle ran this story yesterday, summarizing and updating the efforts of court-appointed receiver Ralph Janvey to locate and unfreeze investor funds. The hardest funds to find have been those related to certificates of deposit.