UPDATE: Attorney says Stanford CFO makes plea deal

HOUSTON — An attorney for a former employee of indicted Texas financier R. Allen Stanford’s business empire says his client has reached a plea deal with federal prosecutors.

Defense attorney David Finn said Wednesday that James M. Davis, 60, Stanford Financial Group’s former CFO, has reached an agreement in which he will plead guilty to three counts he faces as part of the federal government’s criminal case against the financier.

Davis, who has been cooperating with investigators, is set to make his initial court appearance in Houston on July 13. But Finn said Davis will not enter his guilty plea until a later court hearing.

Stanford remains jailed on charges alleging he swindled investors out of $7 billion.

The