Stanford indicted in massive U.S. fraud case

By Tabassum Zakaria

RICHMOND, Va. (Reuters) - Texas billionaire Allen Stanford, three associates and a top Caribbean regulator were indicted on fraud, conspiracy and obstruction charges in an elaborate $7 billion pyramid scheme to bilk investors, U.S. Justice Department officials said on Friday.

Stanford, a flamboyant 59-year-old financier, was set to appear later on Friday in federal court in Virginia to answer Texas grand jury charges he orchestrated the fraud through his bank on the Caribbean island of Antigua.

Stanford could face up to 250 years in prison if convicted on all charges, assistant Attorney General Lanny Breuer told a Washington news conference.

Stanford and executive Laura Pendergest-Holt, accountants Gilberto Lopez and Mark Kuhrt and Antigua's top regulator, Leroy King, were hit with 21 charges alleging they concocted a broad ruse to deceive investors, fabricate financial statements and hide their fraud.

"This scheme was carefully orchestrated to make sure the true information never saw the light of day," said Robert Khuzami, head of the Securities and Exchange Commission's enforcement unit.

Stanford faced a 3 p.m. EDT (1900 GMT) hearing before federal magistrate Hannah Lauck in Richmond after surrendering to FBI agents outside his girlfriend's house in Virginia late on Thursday.

A colorful figure with a fondness for cricket, golf and publicity, Stanford has denied any wrongdoing. His lawyer said on Friday the financier would fight the allegations.

"He is confident that a fair jury will find him not guilty of any criminal wrongdoing," attorney Dick DeGuerin said in a statement.