Stanford Files USD7.2bn Countersuit Against US Prosecutors

February 18, 2011

Allen Stanford, the Texan billionaire accused of running a scheme that persuaded investors to buy certificates of deposit from Stanford International Bank, located in Antigua, has filed a countersuit against US prosecutors, accusing them of depriving him of his constitutional rights.

Stanford has been in custody since June 2009 and is now seeking US$7.2bn in damages from the SEC and FBI in a lawsuit which claims prosecutors “undertook illegal tactics” in their investigation of Mr Stanford’s alleged pyramid scheme that they claim defrauded investors of $7bn.

Mr Stanford was ruled unfit to stand trial last month by US federal judge David Hittner over concerns of his ‘mental capacity to assist his lawyers’. He has pleaded not guilty to fraud, conspiracy and obstruction.

Mr Stanford rose to prominence in the UK and the Caribbean for his lavish sponsorship of cricket and in 2008, he bankrolled a high-profile $20m cricket match between England and a Stanford All-Stars team in Antigua.