HOUSTON, June 19 (UPI) -- R. Allen Stanford, a Texas entrepreneur knighted by Antigua, was charged Friday with a $7 billion scheme to defraud investors, officials in Houston said.
Stanford, chairman of the Standford Financial Group, also was charged with obstruction of justice. Similar charges were filed against the firm's chief investment officer, Laura Pendergest-Holt, and chief accounting officer, Mark Kuhrt, and Leroy King, former chief executive officer of Antigua's Financial Services Regulatory Commission.
Stanford surrendered to authorities Thursday night. He was scheduled to appear in a Richmond, Va., court Friday.
In February, the Securities Exchange Commission charged Stanford had created a "massive Ponzi scheme" through his offshore banks.
The SEC alleges Stanford cheated investors who bought certificates of deposit through Stanford International Bank in Antigua. The certificates offered a high return, and and investors allegedly were led to believe the money was invested conservatively.
Stanford has maintained his innocence since the SEC charges became public.
After owning health clubs and investing in Houston real estate, Stanford started offshore banks in Montserrat and then Antigua. In Antigua, he owned a newspaper, an airline, restaurants and a cricket stadium. He was honored by the government for his services to the island.
Lopez and Kuhrt were arrested Friday morning and were to appear in a Houston court later in the day. Pendergest-Holt, previously indicted on obstruction charges, was scheduled for court appearance in Houston at a later date.
