Allen Stanford secures trial delay

Federal prosecutors have agreed to postpone the scheduled January 24 criminal trial of disgraced financier R. Allen Stanford, who is accused of leading a US$7-billion investment fraud scheme.

But in papers filed with United States (US) District Judge David Hittner late Monday, prosecutors said they disagreed on the duration of any delay.

"The requested continuance of two years is excessive," Assistant US Attorney Gregg Costa said in the filing. Stanford's lawyers, who took over his defence in October, say they need time to prepare.

Stanford, 60, was indicted in 2009 for allegedly masterminding a securities fraud scheme centered on the sale of certificates of deposit by his Antigua-based Stanford International Bank Limited. He has denied the charges.

Preparation of his defence has been hampered by changes of counsel. Stanford fired Houston attorneys Dick DeGuerin and Kent Schaffer over what both lawyers called personality and strategic conflicts. He lost the ability to pay lawyer Robert Bennett after a court said Lloyd's of London underwriters did not have to honour a directors'-and-officers' insurance policy.

Stanford is now represented by court-appointed defence lawyers Ali Fazel and Robert Scardino. They have told the court that their client may be psychologically unfit to stand trial and have asked for a hearing to assess his competency.

Hittner is slated to hear arguments on the postponement.

The defence attorney said a government psychiatrist has completed his evaluation of Stanford's mental state and submitted those findings to the court under seal on Monday.

"We will find out the result of the government physician's diagnoses and prognoses," Scardino said. He declined to comment further, citing a court order against publicly discussing the case.

The court should delay its selection of a new trial date until the competency issue is resolved "so that the new date will be firm," Costa said in his filing.

- CMC