HOUSTON (Reuters) - Texas financier Allen Stanford will spend another night in a Texas jail after he pleaded not guilty on Thursday to 21 criminal charges that he ran a $7 billion Ponzi scheme.
U.S. Magistrate Judge Frances Stacy set Stanford`s bond at $500,000 with a $100,000 cash deposit. But Judge Stacy stayed her order until 4:30 p.m. CDT on Friday (2130 GMT) after the U.S. Justice Department said it plans to appeal, arguing that Stanford was likely to flee the country rather than face life in prison if convicted of the charges.
The once high-flying billionaire and sports promoter has been in federal custody since June 18, when he surrendered to the FBI in Virginia after a Houston grand jury indicted him on 21 counts of conspiracy, fraud and obstruction of justice.
"Not guilty, Your Honor," said Stanford, 59, wearing an orange jump-suit and with his hands manacled in front of him.
Stanford is the second high-profile fraud case to shake public confidence in Wall Street and the U.S. financial regulatory system, after veteran financier Bernard Madoff pleaded guilty to a massive Ponzi scheme that could have cost investors as much as $65 billion.
Stanford, who once owned a fleet of 6 private aircraft, a luxury yacht and houses and castles stretching from Houston to the Caribbean, has spent a week in detention centers in Virginia and recently in the Montgomery County Jail in Conroe, about an hour`s drive north of Houston.
"The big fight is still ahead and I`m confident the world will see Stanford didn`t defraud anybody," Stanford`s criminal attorney, Dick DeGuerin, told reporters outside the courthouse.
Stanford is taking the anti-anxiety drug Ativan after initially turning to alcohol to deal with the stress of the case, DeGuerin said in a filing.
Professional golfer Vijay Singh had offered to cosign Stanford`s bail bond but the court rejected the offer because Singh is not a U.S. citizen, DeGuerin said.
Fijian Singh had an endorsement deal with Stanford and sported a shirt and hat emblazoned with Stanford Financial Group`s eagle insignia when he was competing in last week`s U.S. Open at Bethpage Black in New York.
"HI, DADDY"
Dozens of Stanford`s family sat in the packed courtroom, including James Stanford, his father, and Andrea Stoelker, his girlfriend. "Hi Daddy," his daughter said as Stanford entered the court room after a lunch recess. Stanford winked at her.
According to the U.S. Securities and Exchange Commission, Stanford, with the help of executives at his firm and a top Antigua and Barbuda financial regulator, ran a "massive Ponzi scheme" for over a decade that centered on certificates of deposit in his bank in Antigua.
Stanford says he is innocent of the charges and that his multinational business was legitimate until the SEC "disemboweled" it by filing civil charges, which led to the confiscation of all his assets by a court-appointed receiver.
U.S. District Judge David Hittner will decide on Friday whether the court should keep Stanford in custody, after Justice Department attorneys argued that Stanford was a "serious flight risk." Continued...
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