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Defense Expert Witness: No Fraud in Stanford Int’l Bank’s Annual Reports

The defense team for R. Allen Stanford continued examining expert witnesses on Thursday. The Houston financier's Ponzi scheme trial is now in its second month.

Defense Attorney Ali Fazel picked up his questioning of Morris Hollander, a CPA with fifty years of professional experience.  

Hollander testified that, in his opinion, Stanford International Bank’s annual reports contained no evidence of fraudulent financial reporting.  He also specified the bank’s use of international financial reporting standards, or IFRS, was appropriate given its position as an Antiguan-based company.

On cross examination, Hollander admitted that he had no certification in IFRS. Government attorney Andrew Warren also established multiple inconsistencies in Hollander’s testimony regarding the date the bank switched from U.S. to international accounting standards.

The date of the switch is significant, as the defense is arguing the bank’s use of IFRS freed it from some of the reporting requirements it would have had to follow under U.S. accounting standards.

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Andrew Schneider

Andrew Schneider

Politics and Government Reporter

Andrew heads Houston Public Media’s coverage of national, state, and local elections. He also reports on major policy issues before the Texas Legislature and county and city governments across Greater Houston. Before taking up his current post, Andrew spent five years as Houston Public Media’s business reporter, covering the oil...

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