By Patsy R. Brumfield/NEMS Daily Journal
Allen Stanford reportedly says his memory is gone, the Wall Street Journal reported Friday.
Stanford, the former Texas financier, says he cannot remember events prior to his arrest in June 2009, the WSJ quotes a person close to the case.
Last January, U.S. District Judge David Hittner in Texas ordered Stanford to medical treatment for an addiction to anti-psychotic medications he’d been prescribed in prison.
Hittner declared Stanford incompetent to help with his own defense and postponed his criminal trial on multiple charges that he ran a $7.2 billion Ponzi scheme on investors.
The Dallas judge expects a report soon about Stanford’s current mental condition.
Hundreds of Mississippians were among the 30,000 investors worldwide who lost their life savings and retirement funds when the Stanford empire collapsed in 2009 under the weight of a U.S. Securities and Exchange Commission investigation.
Friday’s WSJ report also says the U.S. Department of Justice is investigating whether French bank Societe Generale helped Stanford’s investor scheme by ignoring suspicious transactions.
At issue is a Swiss bank account held by one of Stanford’s companies at the bank’s subsidiary. The account was allegedly funded by investor money and used to make payments into Stanford’s personal accounts.
If DOJ concludes that the bank ignored potential criminal activity, the report said, that could be the basis for prosecution under federal anti-money laundering statutes.
WSJ said the probe shows that after more than two years investigators still are trying to unravel the global fraud alleged by Stanford and associates.
Prosecutors say Stanford’s “secret account” was accessed only by him and James Davis, his former chief financial officer from Baldwyn.
Davis pleaded guilty to his part in the scheme in the fall of 2009 and has been helping the government with its case. He’s been living on his wife’s family farm in Michigan ever since.