This article is over 11 years old


Stanford CFO James Davis Takes The Stand

The government's star witness in the case against Houston financier R. Allen Stanford took the stand Thursday. James Davis was the chief financial officer for Stanford Financial Group.



To embed this piece of audio in your site, please use this code:

<iframe src="" style="height: 115px; width: 100%;"></iframe>

Davis testified that when he first became CFO in 1991, he discovered Stanford’s banking operations contained only half as much in assets as they were reporting to investors in the bank’s certificates of deposit.

When he confronted his boss with his concerns, Davis said, Stanford replied that he planned to grow CD sales so quickly and in such large amounts that, when the money was invested, it would earn more than enough to pay back current CD holders with interest.

Davis said he raised his concerns with Stanford over and over for years. He demonstrated how, on one occasion, he walked into Stanford’s office, hands clasped together as if handcuffed and ankles pressed together as if manacled, to indicate what would happen to both of them if they were caught. Davis said Stanford simply laughed it off and told him, “I’ll just say you were back here, while I was out trying to grow my companies. I’ll blame it all on you.”

Davis resumes his testimony this morning.

Today in Houston Newsletter Signup
We're in the process of transitioning services for our Today in Houston newsletter. If you'd like to sign up now, fill out the form below and we will add you as soon as we finish the transition. **Please note** If you are already signed up for the newsletter, you do not need to sign up again. Your subscription will be migrated over.
Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew Schneider is the senior reporter for politics and government at Houston Public Media, NPR's affiliate station in Houston, Texas. In this capacity, he heads the station's coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments...

More Information