Billionaire surrenders to FBI over Ponzi charges

R. Allen Stanford, Texas billionaire financier, surrendered to federal agents in Virginia hours after indictments were read against him for orchestrating fraud through his offshore firm. Stanford was knighted by the island nation of Antigua, where he owned a newspaper, an airline, restaurants and a cricket stadium, and through his financial firm operated what the Securities and Exchange Commission described as "a massive Ponzi scheme". Much of the operation centered on sales of high-yielding certificates of deposit, which attracted funds from retirees and others looking for safety amid the tumult of the financial markets. The SEC filed a civil suit against Stanford in February, and now the FBI has prepared criminal charges. Stanford referred to the charges as "baloney". The criminal indictment includes fraud charges against Laura Pendergest-Holt, who was Stanford Financial Group's chief investment officer, and who prosecutors previously charged with obstructing an SEC investigation of the company. Dan Cogdell, attorney for Ms. Pendergest-Holt, said he hadn't seen the indictment but that a Justice Department official said she will be allowed to surrender next week in Houston. Ms. Pendergest-Holt is free on bail. Mr. Cogdell added, "Ms. Holt hadn't committed any crimes. She was innocent before the indictment and she will be innocent after the indictment." Holt's attorney claims that she was "set up" by Stanford.