Federal public defender's office now represents R. Allen Stanford in criminal case

R. Allen Stanford has new lawyers, but they are not from Patton Boggs, which announced in late July it was replacing Houston criminal defense attorney Dick DeGuerin as the Houston financier’s criminal-defense firm. Today U.S. District Judge David Hittner of the Southern District of Texas granted DeGuerin’s motion to withdraw as Stanford’s criminal-defense attorney. He appointed the federal public defender’s office to represent Stanford after determining that Stanford does not have money immediately available to pay for private attorneys. In July, DeGuerin of DeGuerin & Dickson in Houston asked to be let out of the case because DeGuerin wanted assurance that he will be paid. Lawyers from Washington, D.C.-based Patton Boggs announced in late July they were representing Stanford, but they have not formally entered the case because they also want assurance they will be paid. This afternoon, Hittner said the case needs to get ready for trial. “The man needs an attorney. He’s got an attorney,” Hittner said during the five-minute hearing. Wearing an orange jumpsuit and needing a shave, Stanford attended the brief hearing in Hittner’s court. Stanford has been in custody since June, after he pleaded not guilty to fraud and conspiracy charges related to an alleged conspiracy to defraud investors who bought about $7 billion in certificates of deposit sold through Stanford International Bank Ltd. Stanford is charged with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud; 10 counts of mail fraud and one count of conspiracy to commit money laundering. The indictment also charges him with one count of conspiracy to obstruct a U.S. Securities and Exchange Commission investigation and one count of obstruction of an SEC investigation. He has pleaded not guilty. Marjorie Meyers, the federal public defender for the Southern District, says Michael Sokolow will lead the defense. The prosecutors declined comment after the brief hearing today. DeGuerin, who spoke with reporters after the hearing, said the federal public defender’s office is “highly competent” and hard working and will well represent Stanford. Sam Rosenthal, a Washington, D.C., Patton Boggs partner who attended the hearing, declined comment after the hearing except to note that Stanford’s motion asking Hittner to allow Patton Boggs to appear as his counsel for the limited purpose of “resolving whether Mr. Stanford will be granted access to monies to pay for his legal fees and expenses” is pending. DeGuerin said the receiver in the SEC’s civil suit against Stanford Financial Group has taken virtually all of Stanford’s assets — “right down to his socks.” Stanford and other defendants have attempted to obtain money through Stanford Financial Group’s directors and officers insurance policy, but the receiver in the civil suit has claimed the policy proceeds. However, on Sept. 14, Ralph Janvey, the Dallas lawyer who is the receiver in the civil suit, filed a response to motions for payment of fees filed by Stanford and other defendants, indicating he is “willing to consider a negotiated compromise allocation, subject to court approval.”
-- Brenda Sapino Jeffreys