Stanford official arrested

A senior Stanford official named in a multi-billion dollar fraud investigation has been arrested and charged by the Federal Bureau of Investigation (FBI) with obstructing a probe by US financial regulators.



An affidavit filed by the FBI in the US District Court in Dallas claims Stanford’s Chief Investment Officer, Laura Pendergest-Holt, misled Securities and Exchange Commission (SEC) investigators as they questioned her as part of their probe into the Antigua-based Stanford International Bank.



However, her lawyer said she did not commit a crime.



Earlier this month, the SEC filed civil charges against Chairman of the Stanford Group of Companies Sir Allen Stanford, Pendergest-Holt and Stanford International Bank Chief Financial Officer James Davis.



The suit alleged that Stanford International Bank defrauded investors and account holders of an estimated U$ eight billion in deposits by promising improbable and unsubstantiated high interest rates.



The FBI affidavit said Pendergest-Holt made misrepresentations about her knowledge of Stanford\'s investment portfolio and about whether she met with other Stanford officials to prepare for her testimony.



The SEC also named the Houston-based broker-dealer and investment adviser Stanford Group Company (SGC), and investment adviser Stanford Capital Management in its civil suit filed on February 17.