CMC - The former executive for jailed Texas financier Allen Stanford has been jailed for five years.

James M. Davis, 64, who formerly worked with the Houston-based Stanford Financial Group and the Antigua-based Stanford International Bank (SIB), was sentenced yesterday, for his role in helping the disgraced billionaire perpetrate a Ponzi scheme involving SIB, and for conspiring to obstruct a US Securities and Exchange Commission (SEC) investigation into SIB.

US District Judge David Hittner also sentenced Davis to serve three years of supervised release.

Assistant Attorney General, Lanny A. Breuer said as part of Davis’ sentence, the court also imposed a personal money judgment of US$1 billion “which is an ongoing obligation for Davis to pay back criminal proceeds”.

During the sentencing proceeding, Judge Hittner noted that Davis began cooperating with the government in early 2009, shortly after SIB’s collapse.

The judge also noted that over the following three years, Davis provided “substantial assistance” to the authorities in the investigation and prosecution of others, including testifying at Stanford’s trial.

In addition, the judge noted that Davis prepared to testify against Laura Pendergest-Holt, Stanford’s chief investment officer, who eventually pleaded guilty and was jailed for three years.

Stanford is currently serving 110 years in prison, respectively, while two other former employees are in federal custody and await sentencing, scheduled for February 14.

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