One last bizarre turn in Stanford case


On page 15 of a settlement document with the government, James Davis, the financial chief of the operations controlled by Allen Stanford, says that Stanford and the chief bank regulator of Stanford's bank in Antigua sealed a blood oath in 2003 by cutting their hands and mixing their blood. After that, the two men were brothers of a sort, at least in Stanford's mind.

Stanford and the government official helped cover up Stanford's frauds for years. Davis, who helped build and maintain the Stanford Ponzi scheme, faces as much as three decades in prison after pleading guilty to assisting Stanford in manipulating the money in his funds and hiding the results from clients.

Originally published