[ by Howard Haykin ]

R. Allen Stanford’s former chief accounting officer, Gilbert Lopez, 70,  was sentenced to 20 years in prison for helping to conceal Stanford’s $7 billion Ponzi scheme.  [ C-I Note: Compare that to Bernie's Brother, Peter, who settled his case for just 10 years in prison - prison terms have little if any consistency.]

U.S. District Judge David Hittner has presided over the cases, which took place in Houston.  In addition to Lopez, Stanford’s former controller, Mark Kuhrt, 40, also stood trial before Judge Hittner.  Both men were convicted in November of conspiring to hide the fraud - that was built on bogus CDs at Antigua-based Stanford International Bank Ltd., prosecutors said.  Lopez and Kuhrt were the last 2 Stanford executives to be criminally tried for their roles in the scheme.  Each was found guilty of nine of 10 wire fraud counts and one count of conspiracy to commit wire fraud.  They have been jailed in downtown Houston pending sentencing.

Sentencing Arguments.   Lawyers for Lopez and Kuhrt urged jurors to acquit the men, claiming they were duped by Stanford and his top deputy, finance chief James M. Davis, into creating the false financial statements investors relied on.  Davis, 64, then cooperated with prosecutors and reached a plea deal in 2009 in which he said Stanford’s operation was a fraud from the start. Davis was sentenced last month to five years in prison based on his cooperation and ability to lead government agents to secret bank accounts and evidence used to convict Stanford.

Another senior Stanford executive, former Chief Investment Officer Laura Pendergest Holt, pleaded guilty in June to obstructing an investigation by the SEC.  She was sentenced to three years in prison.

The lawyer for Lopez, Jack Zimmermann, said his client was down the chain of command, and asked for a sentence of 8 years in total - consisting of 3 years in prison, 2 years in home confinement, followed by 3 years’ supervised release.  The prosecution, however, recommended a 25-year sentence for Mr. Lopez, pointing out that he was "the number-one accounting executive for a decade," and that he knew the crucial thing -  the massive misuse of victims' money." 

U.S. District Judge David Hittner imposed the 20-year sentence Thursday in Houston.  Also set for sentencing was Stanford’s former controller, Mark Kuhrt, 40.  Hittner said he deviated downward from the advisory federal sentencing guidelines of a sentence, in effect, of life behind bars to avoid unwarranted disparities and Lopez’s “lesser culpability and gain from this fraud.”  He calculated the sentence after determining that Lopez lied during his trial testimony, as the government claimed, the judge said.
Besides the prison term, tLopez was ordered to pay a $25,000 fine.

After the 20-year sentence was read, Lopez's lawyer said the verdict and sentence will be appealed.  Given his current age - 70 - Lopez received what essentially is a life sentence.  However, it is possible he could get an early release from prison.

Stanford’s Conviction.   Allen Stanford, 62, was convicted in March of masterminding the fraud and stealing more than $2 billion of investor funds to finance a lavish lifestyle of private jets, yachts and waterfront mansions along with his money-losing side enterprises. He is serving a 110-year sentence in a Florida federal prison and has appealed his conviction and sentence.

The case is U.S. v Lopez, 4:09-cr-0342, U.S. District Court, Southern District of Texas (Houston).

For further details, go to;   [ Bloomberg, 2/14/13 ].