Disgraced Financier Arrested In Virginia

** FILE ** In this Wednesday, June 11, 2008 file photo, Sir R. Allen Stanford waves at Lords Cricket Ground in London. Federal regulators on Tuesday, Feb. 17, 2009 charged Stanford and three of his companies with a "massive fraud" that centered around high-interest-rate CDs. (AP Photo/Lefteris Pitarakis, File) AP Photo/Lefteris Pitarakis

Last updated 10:52 p.m. EDT

Law enforcement sources confirm that billionaire financier R. Allen Stanford is in custody, reports CBS News correspondent Bob Orr. He was arrested tonight by FBI agents at his sister's house in Stafford, Virginia.

Stanford has been accused by the SEC of running a massive Ponzi scheme.

He surrendered to FBI agents from the Washington and Richmond field offices. It is believed he will be taken to Richmond tonight for processing, Orr reports. The Department of Justice is expected to make an announcement Friday regarding possible charges.

Stanford's Attorney Dick DeGuerin said Stanford walked out and asked if the agents had a warrant. He told them to arrest him if they did and that he planned to return to Houston on Friday to turn himself in if they didn't.

A grand jury in Houston has been investigating Stanford Financial Group. The Securities and Exchange Commission filed civil charges earlier this year accusing Stanford and his top executives of conducting an $8 billion fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank. Investigators have said the Texas billionaire financier's offshore bank and financial companies used rosy financial predictions and old-fashioned deceit to lure investors into a scam.

In March, a federal judge ruled that the government could go after at least $226.6 million in back taxes, penalties and interest it says are owed by Stanford.
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