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Billionaire So Broke Doesn't Even Have Underwear

(AP Photo/David J. Phillip)
R. Allen Stanford is escorted into the federal courthouse Thursday, June 25, 2009.

HOUSTON (CBS/AP) It's been a tough few weeks for Texas mega-banker R. Allen Stanford. His empire once included billions in assets and a prestigious place in the upper crust of Antiguan society.

Now the financier, accused of running a $7 billion Ponzi scheme, says he's so broke he doesn't even have underwear, but prosecutors allege he could have billion in secret funds.

Dick DeGuerin, Stanford's attorney, had asked for a reasonable bond amount, saying his client is broke because authorities have seized all his assets, including his underwear and socks. He said Stanford wants to fight the charges against him, not flee.

"He could have fled in the several months this was developing, very easily," DeGuerin said.

Still, Stanford is fortunate to have well-heeled family and friends, who have agreed to front the $100,000 deposit required for his $500,000 bond.

Stanford might be released today. He will be required to participate in a GPS location monitoring program.

He pleaded not guilty Thursday to charges he swindled investors out of $7 billion as part of a massive investment scam. Stanford entered his plea during his arraignment in federal court.

At his bond hearing, prosecutors argued Stanford should be held without bond because he might have access to billions of dollars in secret funds.

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June 19, 2009 - Texas Billionaire Busted For Ponzi Scheme

  • Neil Katz

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