Stanford Defense Cross-Examines ex-CFO Davis

The lead attorney for R. Allen Stanford is continuing to cross-examine the government's star witness in the Houston financier's Ponzi scheme trial. James Davis, the former chief financial officer for Stanford's companies, is testifying against Stanford under a plea agreement.

Defense counsel Robert Scardino questioned Davis about a $400,000 wire transfer Davis told government investigators he’d received from Stanford’s Swiss bank account in 2006. The defense tried to get Davis to explain why he’d first mentioned the transfer to prosecutors in December 2011 — more two years after his plea agreement. Davis said only that he’d answered questions as he’d been asked.

Scardino then took Davis through a list of checks Stanford had made out to Davis over the course of 2006, each also in amount of $400,000. The attorney drew admissions from Davis that the former CFO had not reported any of the checks as income on his 2006 tax return.

Scardino went so far as to ask whether Davis’ plea deal included a government pledge not to prosecute him for tax fraud. Davis insisted that his accountant had advised him the checks were gifts and did not have to be declared as income.

From the federal courthouse downtown, Andrew Schneider, KUHF Business News.


Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined News 88.7 in January 2011. Since arriving in Houston, he has reported on the many changes wrought on the region’s economy by the revolution in domestic oil and gas production. His non-energy reporting runs the gamut from white-collar crime to cattle ranching. His work has aired on...

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