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.

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.

Stanford Tells His Side
null

"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.

VIDEO: Allen Stanfords Tearful Interview
null

Click Here for the Blotter Homepage.

-- This embed didnt make it to copy for story id = 7877117. -- This embed didnt make it to copy for story id = 7877117. -- This embed didnt make it to copy for story id = 7877117. -- This embed didnt make it to copy for story id = 7877117. -- This embed didnt make it to copy for story id = 7877117. -- This embed didnt make it to copy for story id = 7877117. -- This embed didnt make it to copy for story id = 7877117.
Join the Discussion
blog comments powered by Disqus
 
You Might Also Like...
See It, Share It
PHOTO: Chris Soules and Whitney Bischoff are seen at ABC Studios for Good Morning America on March 10, 2015 in New York.
Josiah Kamau/BuzzFoto/Getty Images
PHOTO: Former Olympic athlete Bruce Jenner arrives at the Annual Charity Day hosted by Cantor Fitzgerald and BGC Partners, in New York, Sept. 11, 2013.
Mark Von Holden/Invision/AP Photo
PHOTO: The Lamborghini SpA Urus sport-utility concept vehicle is unveiled during a Volkswagen AG event in Beijing, April 22, 2012.
Nelson Ching/Bloomberg/Getty Images
PHOTO: Researchers say that this skull, which shows two fractures believed to be created by blunt force trauma, is the earliest evidence of murder in human history.
Sala N/Arsuaga JL/Pantoja-Perez A/Pablos A/MartiĀ­nez I/Quam RM