Sir Allen Stanford Surrenders to FBI

Billionaire banker 'Sir' Allen Stanford, accused of bilking his investors out of $8 billion, surrendered to the FBI in Virginia Thursday evening, according to his attorney Dick Deguerin. Deguerin told ABC News that Stanford is now in custody and that a hearing is expected Friday morning.

A grand jury investigating the Stanford Financial Group returned a sealed indictment Thursday, the Houston Chronicle reported.

Stanford Tells His Side
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In April, Stanford told ABC News Chief Investigative Correspondent Brian Ross in an exclusive interview that he expected to be indicted soon. The Securities and Exchange Commission alleges Stanford ran a fraud promising investors impossible returns, much like Bernard Madoff's $65 billion alleged Ponzi scheme.

"I would die and go to hell if it's a Ponzi scheme," Stanford said in reaction to civil allegations from the Securities and Exchange Commission that he bilked thousands of customers in an $8 billion fraudulent scheme involving "self-styled certificates of deposits" with "improbable" rates of return.

VIDEO: Allen Stanfords Tearful Interview
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"Baloney. Baloney," Stanford told ABC News. "It's not a Ponzi scheme . If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?"

The SEC froze all of Stanford's assets it has found, including $4.6 billion which a federal judge recently "unfroze" so it could be distributed to his depositors and customers. According to SEC officials, only $500 million connected to the alleged fraud has been recovered so far.

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