Indicted U.S. billionaire Allen Stanford, accused by the federal government of directing a 7-billion-U.S.-dollar fraud, pleaded not guilty to fraud and conspiracy charges in a Houston court on June 25.
In a detention hearing on Thursday, the 59-year-old disgraced financier pleaded not guilty before Federal Magistrate Judge Frances Stacy, and asked the judge to release him on bond.
But prosecutors argue that Stanford is a flight risk with wide international contacts and with experience using private jets and bribing foreign officials. They also allege Stanford has many wealthy friends who will financially support him, even in an escape.
Stanford's lawyer Dick DeGuerin argues in a filing that Stanford has family in Texas and he did not escape even when he knew an indictment was pending. DeGuerin also points out that the case is a complex one which needs a year or so to prepare and it would be unfair to keep Stanford in custody for so long and to keep him from helping preparing his case.
Judge Stacy is expected to decide later on Thursday whether to grant a bond to Stanford.
Three other executives of the Stanford Financial Group -- Stanford Chief Investment Officer Laura Pendergest-Holt, Houston-based accountant Gilberto Lopez and Houston-based global controller Mark Kuhrt, also entered not guilty pleas on Thursday.
Stanford was arrested on June 18 in Virginia, and indicted on June 19, along with his three associates and a top Caribbean regulator, on fraud, conspiracy and obstruction charges. If convicted of all charges in the 21-count indictment, he could face life in prison.
Stanford's case is the first major financial crimes prosecution brought under the administration of U.S. President Barack Obama, who has vowed to crack down on economic malfeasance amid a deep global recession.
