Fraud

HOUSTON (Covering Katy News) - The former chief of Antigua’s Financial Services Regulatory Commission has been extradited from Antigua to face charges for his alleged role in connection with the Stanford International Bank $7 billion investment fraud scheme, announced U.S. Attorney Ryan K. Patrick and Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

Leroy King, 74, of Dickerson Bay, Antigua, is the last remaining defendant in the SIB Ponzi scheme. He has been a fugitive since 2009. 

King appeared before U.S. Magistrate Judge Dena Hanovice Palermo in Houston today. He is scheduled to appear again before Judge Palermo Thursday, Nov. 14, at 2 p.m. for a counsel determination hearing.

King was charged in June 2009 along with R. Allen Stanford, Houston, and others. The indictment charges King with one count of conspiracy to commit mail, wire and securities fraud; seven counts of wire fraud; 10 counts of mail fraud; one counts each of conspiracy to obstruct and obstruction of a Securities and Exchange Commission (SEC) investigation; and conspiracy to commit money laundering.

The indictment alleges King accepted more than $100,000 in bribes from Stanford in exchange for ignoring the actual value of SIB’s assets. He also allegedly assisted Stanford and others in obstructing the SEC’s investigation into the bank. 

A federal jury found Stanford guilty in June 2012 for his role in orchestrating a 20-year investment fraud scheme in which he misappropriated $7 billion from SIB to finance his personal businesses. He is serving a 110-year prison sentence. Five others were also convicted for their roles in the scheme and received sentences ranging from three to 20 years in federal prison. 

The FBI’s Houston Field Office, IRS-Criminal Investigation and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney John Pearson and Trial Attorney Brittain Shaw of the Criminal Division’s Fraud Section are prosecuting the case. The Criminal Division’s Office of International Affairs provided substantial assistance with the preparation of the extradition request and in support of Antigua’s domestic litigation. The FBI Legal Attaché’s Office in Barbados and the U.S. Marshals Service in Houston coordinated King’s extradition.

The Justice Department extends its gratitude to the government of Antigua for its cooperation and assistance.

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