Insurer Says Texas Financier Must Pay Legal Bills
A court hearing continues today in Houston in a dispute over who'll pay the legal fees of jailed Texas financier R. Allen Stanford and two of his former company executives.
They're accused of bilking investors out of $7 billion in a massive Ponzi scheme.
Attorneys for an insurance company say the trio lied to investors and falsified financial statements -- disqualifying them from having their legal bills paid for by the firm.
But Stanford and ex-executives Gilbert Lopez and Mark Kuhrt contend they did nothing wrong, blaming others for the alleged wrongdoing and saying the insurer -- Lloyd's of London -- should honor the policy.
U.S. District Judge Nancy Atlas will decide.
So far, Lloyd's has paid more than $15 million in legal fees to Stanford and the executives in their criminal and civil cases. The policy will pay up to $100 million.
(Copyright 2010 by The Associated Press. All Rights Reserved.)
