Antigua judge rejects appeal by ex-regulator

February 7, 2012

CBS News on February 6, 2012 released the following:

“(AP) ST. JOHN’S, Antigua — An Antiguan judge on Monday upheld a decision paving the way for the U.S. extradition of a former financial regulator indicted in an alleged $7 billion swindle by Texas financier R. Allen Stanford.

High Court Judge Mario Michel on Monday rejected Leroy King’s challenge on a magistrate’s 2010 ruling.

The decision to extradite is now in the hands of Prime Minister Baldwin Spencer, who also serves as the Caribbean country’s external affairs minister. He made no immediate comments about King.

King was fired in 2009 as Antigua’s top financial regulator after being accused of accepting bribes to turn a blind eye to irregularities in Stanford’s financial empire. He also allegedly wrote false and misleading letters to the U.S. Securities and Exchange Commission.

Dane Hamilton, King’s attorney, would not comment about Monday’s ruling, except to say that his client is “exploring other legal options.”

King, who remains under house arrest at his beachfront condominium just outside the capital of St. John’s, had led Antigua’s Financial Services Regulatory Commission. He has been indicted of conspiracy to commit mail fraud, wire fraud, money laundering and obstruction of the SEC.

U.S. prosecutors allege Stanford orchestrated a massive Ponzi scheme by advising clients to invest more than $7 billion in certificates of deposit from the Stanford International Bank in Antigua.

Stanford’s attorneys contend the financier was a savvy businessman whose financial empire, headquartered in Houston, was legitimate.

At Stanford’s trial in Texas last week, the financier’s former finance chief testified that bribes of at least $10,000 to $15,000 were allegedly paid every three months to King.

King helped tip the financier off in 2005 when the U.S. Securities and Exchange Commission began investigating the CD program, Davis testified. Stanford help write the response King sent back to the SEC in 2006 saying his agency had found nothing wrong at the bank, he said.”

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Douglas McNabb – McNabb Associates, P.C.’s
International Extradition Lawyers Videos:

International Extradition – When the FBI Seeks Extradition

International Extradition – Wire Transfer – Email – Telephone Call

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We previously discussed the extradition treaty between the United States and Antigua and Barbuda here.

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To find additional global criminal news, please read The Global Criminal Defense Daily.

Douglas McNabb and other members of the U.S. law firm practice and write and/or report extensively on matters involving Federal Criminal Defense, INTERPOL Red Notice Removal, International Extradition and OFAC SDN Sanctions Removal.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.


Alleged Fugitive from Texas Arrested by AFI in Mexico; US Extradition Pending

July 19, 2010

Harris Dempsey “Butch” Ballow, 67, formerly of Galveston County, Texas, has been charged with conspiracy and wire fraud in a two-count indictment by a Houston grand jury, United States Attorney José Angel Moreno announced today.

Ballow was a fugitive from justice in the United States for more than five years until his arrest on Tuesday, July 13, 2010, by agents of the Mexican Agencia Federal de Investigaciones (AFI) working closely with the FBI pursuant to a provisional arrest warrant. Ballow remains in custody in Mexico City awaiting extradition to the United States.

Originally indicted in federal court in Houston in 2003 for fraud and money laundering centering on misrepresentations made in connection with the purchase and sale of stock, Ballow pleaded guilty before U.S. District Judge David Hittner to money laundering in November. At the time, Ballow, who had been in custody without bond for approximately a year, agreed to cooperate with an Securities and Exchange Commission investigation and was released on a $100,000 bond pending his sentencing set for Dec. 16, 2004. However, facing 10 years imprisonment, Ballow failed to appear for the sentencing and fled the country. A warrant for Ballow’s arrest issued the next day, Dec. 17, 2004.

According to allegations in today’s indictment, Ballow lived under the names John Gel, Tom Brown and Marty Twinley during his time as a fugitive and also acquired a British passport in the name of Melvyn John Gelsthorpe. The indictment alleges Ballow used these names to take control of publicly-traded United States corporations, including E-SOL International Corp., Medra Corp., Deep Earth Resources Inc. and Aztec Technology Partners Inc.—now called Ultimate Lifestyles Corporation— and sold the stock to investors without revealing his true identity, his use of multiple names, his past convictions for fraud and money laundering and his status as fugitive from justice in the United States.

The indictment further alleged that Ballow moved to Puerto Aventuras, Mexico, in 2008, but disappeared in July 2009, just days after allegedly convincing an American investor from Texas to wire transfer $5 million to E-SOL in Reno, Nev. In October 2009, the indictment alleges Ballow reappeared in Puerto Vallarta, Mexico, where he lived in a luxurious golf resort and was arrested by Mexican federal police on July 13, 2010.

An indictment merely contains allegations of unlawful violations. Individuals are innocent until proven guilty beyond a reasonable doubt.

Douglas McNabb and other members of the firm practice and write extensively on matters involving Federal Criminal Defense, Interpol Litigation, International Extradition and OFAC Litigation.

The author of this blog is Douglas McNabb. Please feel free to contact him directly at mcnabb@mcnabbassociates.com or at one of the offices listed above.

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