Stanford group finance officer admits huge fraud ($7billion+)

The chief financial officer of the investment company owned by Texas cricket mogul Allen Stanford Thursday pleaded guilty to charges stemming from a complex seven-billion-dollar fraud.

James Davis, 60, the former chief financial officer of Houston-based Stanford Financial Group, pleaded guilty to fraud and obstruction charges, the Department of Justice said in a statement.

Davis admitted he and his co-conspirators defrauded investors who bought about seven billion dollars in certificates of deposit administered by the Antigua-based Stanford International Bank.

He admitted the scam dated back to 1990 when he and his co-conspirators began making false entries into the bank’s ledgers about its revenues and revenue balances, the DOJ said.

Stanford, 59, a flamboyant Texan billionaire who sought to revolutionize the world of cricket, pleaded not guilty in June to 21 charges of fraud, money-laundering and obstruction.

He is being held without bail in a jail near Houston, Texas, awaiting trial, and officials said Thursday he had been hospitalized. Attorney Robert Luskin said the disgraced financier was suffering a “heart condition of some kind.”

Davis admitted Thursday the team misappropriated most of the bank’s investor assets, including by diverting more than 1.6 billion dollars into undisclosed personal loans to a co-conspirator, the Justice Department added.

rawstory.com...

Yet another one, caught red handed.
How many more will we see?
It seems hundreds of large companies have been cooking the books for years.
Will he get a spanking or jail time? Will the company live, be shut down or bought out?