Ex-Stanford Exec Testifies Of Blood Oath

Published February 2, 2012 11:00PM (EST)

HOUSTON (AP) — The ex-chief financial officer for Texas tycoon R. Allen Stanford's business empire tells jurors the financier took extreme measures to hide his Caribbean bank's fraud, included entering into a blood oath with a top regulator.

James M. Davis worked for the Stanford Financial Group Co. for 21 years. He testified Thursday at the financier's fraud trial in Houston.

Prosecutors allege Stanford used money from those who bought certificates of deposit from his bank in Antigua to pay for his businesses and for his billionaire lifestyle.

Stanford's attorneys contend he was a savvy businessman whose financial empire was legitimate. They have suggested that Davis is the true culprit behind the alleged fraud.

Davis has pleaded guilty in the case as part of an agreement with prosecutors.

By Salon Staff

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