Stanford To Be Indicted on Fraud Charges

Updated from 12:22 a.m. EDT

By Linda Franklin

Texas billionaire R. Allen Stanford, chairman of the troubled Stanford Financial Group, is scheduled to appear in federal court Friday on fraud charges after surrendering to FBI agents in Virginia the day before, officials said.

Authorities plan to unseal an indictment charging Stanford, law enforcement officials said, speaking on condition of anonymity because they were not authorized to discuss the case. Stanford surrendered in Stafford, Va., on Thursday and is to appear in federal court in the state capital, Richmond, on Friday morning, the officials said.

A grand jury in Houston has been investigating Stanford Financial Group. The Securities and Exchange Commission filed civil charges earlier this year accusing Stanford and his top executives of conducting an $8 billion fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.

Stanford has maintained his innocence.

Dick DeGuerin, Stanford's attorney in Houston, told the Associated Press that Stanford "surrendered this afternoon to some FBI agents who were hiding out in black SUVs outside the residence where he was staying in Virginia."

"He walked out and asked if they had a warrant," DeGuerin said. He said Stanford told them to arrest him if they had a warrant and said if they didn't he would go back to Houston Friday to turn himself in.

FBI spokesman Richard Kolko declined to comment.

Laura Pendergest-Holt, chief investment officer of Stanford's parent company, is facing criminal charges of obstructing the SEC's investigation by lying about her knowledge of the firm's activities and omitting key details.