The chief financial officer of the investment company owned by Texas financier Allen Stanford has pleaded guilty to charges stemming from a $7 billion fraud.
James Davis, 60, the former chief financial officer of Houston-based Stanford Financial Group (SFG), pleaded guilty to fraud and obstruction charges, the Department of Justice said in a statement.
Davis admitted he and his co-conspirators defrauded investors who bought about $7 billion in certificates of deposit (CDs) administered by the Antigua-based Stanford International Bank.
Meanwhile, Stanford himself - who is being held without bail in Texas on fraud charges - has been hospitalised. US Marshals Service spokesman Dave Turner declined to give details about Stanford's health condition.
The 59-year-old, who awaits his trial in a prison north of Houston, faces up to 375 years in jail if convicted on 21 charges of multi-billion-dollar fraud, money-laundering and obstruction.
Stanford has been struggling to find a lawyer while he sees his Caribbean islands, mansions and a fleet of jets sold off to pay victims of an alleged decade-long Ponzi scheme.
He has already lost one defence lawyer for not paying his bills and was having trouble finding another to defend him without guaranteed compensation.
