In August, Stanford's former chief financial officer James Davis pled guilty to conspiracy to commit mail, wire and securities fraud, mail fraud, and conspiracy to obstruct a SEC investigation, in relation to the alleged Ponzi scheme. Davis faces up to 30 years in prison when he's sentenced Nov. 20, although his attorney David Finn told the AP the sentencing may be delayed as Davis continues to help prosecutors. Finn said Davis has been cooperating for the last six months and has a deal with the Justice Department for a possible reduced sentence.
Davis' plea agreement brought forth bizarre new details about the case, including the allegation that Stanford entered into a "blood oath" with Antiguan bank officials.
The plea agreement, entered into court Thursday, alleges that Stanford and Leroy King, the former administrator and CEO of Antigua's Financial Services Authority, participated in the brotherhood ceremony together with another employees of the Financial Services Regulatory Commission.
"This brotherhood oath was undertaken in order to extract an agreement from both King and the other FSRC employee that they, in exchange for regular cash bribe payments by Stanford to King and the other FSRC employee, would ensure that the Antiguan bank regulators would not 'kill the business' of SIBL," the agreement reads. It also said that Sanford's alleged fraud dates back to 1990.