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Allen Stanford’s Ex-CFO James Davis Gets 5-Year Sentence
Former Stanford Financial Group Co. finance chief James M. Davis was sentenced to five years in federal prison for his role in a 20-year, $7-billion international fraud scheme.
U.S. District Judge David Hittner imposed the sentence today at a hearing in federal court in Houston. He also sentenced Davis to three years of post-release probation.
Prosecutors had sought a 10-year term for Davis, 64, who pleaded guilty to felony charges in 2009 and testified against financier R. Allen Stanford. Davis’s attorney asked the judge to cap the sentence at four years, citing his client’s cooperation and early acceptance of responsibility.
“I’m not here telling your honor that Mr. Davis was a saint,” the attorney, David Finn, told Hittner today. “From our first meeting he has been remorseful, contrite and has tried to make amends for the harm he has done.”
Davis was the second-highest ranking member in Stanford’s business empire, which included the Antigua-based Stanford International Bank Ltd. The bank offered certificates of deposit and the Houston-based Stanford Group Co. brokerage sold them. Stanford, who was convicted of lying about what his bank was doing with CD buyers’ money, is serving a 110-year sentence at a U.S. prison in Coleman, Florida.
Davis and Stanford once shared living quarters while they were students at Baylor University in Waco, Texas.
“I’m ashamed and I’m embarrassed,” Davis told the judge today. “I’ve perverted what was right and did wrong. I hurt thousands of investors, I betrayed their trust, also that of associates, neighbors and friends, my family and this court and this country. Everything that I was part of, I failed them and I’m sorry.”
Hittner recommended that Davis be sent to a U.S. prison camp near Memphis, Tennessee. Davis must surrender in 60 days.
http://www.bloomberg.com/news/2013-01-22/allen-stanford-s-ex-finance-chief-gets-five-year-prison-sentence.html
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Schroders employee one of five held in FSA insider probe
An employee at Schroders, the asset management company, was one of five people arrested on Tuesday in connection with an investigation into insider dealing and market abuse.
Schroders said the individual had been suspended with immediate effect.
"The FSA has informed us that the allegations relate entirely to this individual’s personal actions, " the company said in a statement.
"Schroders is not subject to any investigation. There is no indication of any detrimental impact on our clients or financial results."
The company said the person was not a fund manager or analyst.
The Financial Services Authority (FSA) reported earlier today that police arrested two men, aged 37 and 62, and three women, aged 39, 51 and 63, and searched four properties in the City of London, Lincolnshire, Leicestershire and North Yorkshire as part of an investigation into insider dealing and market abuse.
The regulator said the arrests were not linked to any other ongoing insider dealing investigation.
The FSA has been clamping down on insider trading. It has secured 21 convictions for the offence since 2009.
Insider dealing can carry a jail sentence of up to seven years.
http://www.telegraph.co.uk/finance/financial-crime/9818087/Schroders-employee-one-of-five-held-in-FSA-insider-probe.html
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2 comments:
5 years? WTF? he would go to a white collar jail" and out of 5 years he probably come out like in a year maybe no more than two why not 55 to 65 years ? now take a poor person who steal a 6 pack of beer and he would get at least 10 years in prison
I guess this is a start in the right direction, but these are the small potatoes.
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