Ex-Stanford Executive Sentenced In $7 Billion Swindle

HOUSTON (January 22, 2013)--A federal judge in Houston sentenced the star prosecution witness in the trial of convicted Texas financier R. Allen Stanford to 5 years in prison Tuesday for bilking investors out of more than $7 billion in one of the biggest Ponzi schemes in U.S. history.

James M. Davis had faced as much as 30 years in prison after pleading guilty in 2009 to three fraud and conspiracy charges.

Prosecutors say Stanford persuaded investors to buy certificates of deposit from his Caribbean bank, then used that money to bankroll a string of failed businesses and his own lavish lifestyle.

Davis is the former finance chief for Stanford's various companies.

He testified that he and Stanford faked the bank's profits and fabricated documents to hide the fraud.

Stanford is a Mexia native, Baylor University graduate and former Waco businessman.

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