Cricket tycoon Stanford files 7.2 billion dollar lawsuit against US prosecutors, SEC

February 19th, 2011 - 12:33 pm ICT by ANI  

Houston, Feb 19(ANI): Texas billionaire and cricket tycoon R. Allen Stanford, accused of fleecing investors out of seven billion dollars in a pyramid Ponzi scheme, has filed a counter lawsuit against U.S. prosecutors seeking 7.2 billion dollars in damages.

According to the Daily Mail, Stanford filed the lawsuit on Wednesday claiming that U.S. prosecutors ‘undertook illegal tactics’ in their investigation.

He contends that the federal government has used over 51 million dollars of his assets to pursue the cases against him, and violated his constitutional rights.

Stanford argues that they began the civil enforcement action solely to gather evidence for his criminal prosecution and prevented him from using his money to pay for his defense.

“Stanford is entitled to fair compensation for all property and assets taken,” Stanford’s lawyer, Stephen R. Cochell, said.

Many of Stanford’s assets and holdings have been liquidated by a Dallas federal court-appointed receiver in the Securities and Exchange Commission (S.E.C.) case.

The 60-year-old and three ex-executives of his now-defunct Houston-based Stanford Financial Group are accused of orchestrating a colossal pyramid scheme in 2009 by advising clients from 113 countries to invest over seven billion dollars in certificates of deposit at the Stanford International Bank on the island of Antigua, promising huge returns.

However, Stanford’s attorneys have denied the allegations against him, saying that he ran a legitimate business and did not misuse bank funds to pay for a lavish lifestyle.

He has been in custody since June 2009, when he surrendered to the US authorities after a warrant was issued for his arrest.

He faces up to 375 years in jail if convicted. (ANI)

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