Attorneys for Stanford say financier didn’t use $1.7B in investor funds as personal loans

Lawyers: Texas financier didn’t tap investor money

HOUSTON — Lawyers for R. Allen Stanford say the Texas financier did not take out $1.7 billion in deposits made to his now defunct Caribbean bank and use them for loans to himself.

Stanford’s attorneys were trying to shoot down claims made by a fraud examiner who has testified the financier used the money as personal loans.

Stanford’s financial dealings were being examined during a court hearing Thursday in which a federal judge was to decide if Stanford and two ex-executives of his now defunct companies will continue having their legal bills paid for by an insurance policy. They are fighting charges they bilked investors out of $7 billion in a massive Ponzi scheme.