Stanford Financial Group CFO Pleads Guilty

Former Stanford Financial CFO James M. Davis arrives at federal court in Houston Thursday, August 27, 2009. AP Photo/Michael Stravato



CBS News has learned that James M. Davis, 60, the former chief financial officer of the embroiled Stanford Financial Group, pleaded guilty today to fraud and obstruction charges. The Houston-based company has been accused of perpetuating a $7 billion Ponzi scheme.

Meanwhile, the company's chairman, R. Allen Stanford, was taken to a hospital this morning. Stanford was set to appear in a Houston federal courtroom Thursday for a hearing on whether he can get a new attorney.

But his current attorney, Dick DeGuerin, said that at about 5:30 a.m. Thursday, Stanford was taken from the privately run prison where he is being held in the Houston area to a hospital in nearby Conroe with a high pulse rate.

DeGuerin said he did not have any other information about Stanford's condition. The hearing was still set to be held Thursday.
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