[ by Melanie Gretchen ]

Allen Stanford's former CFO James Davis was sentenced on Tuesday for his role in Stanford's $7 billion Ponzi scheme.  Despite serving as the government's top witness in the fraud trial of his former boss and college roommate, Davis, who pled guilty in 2009, received 5 years in prison for fraud, conspiracy to commit fraud, and conspiracy to obstruct a SEC investigation.

"I am ashamed and I am embarrassed." -- Davis, before the court in a breaking voice, adding that he let down his family, co-workers and thousands of investors.

Davis, who could have received 30 years, got more than his lawyer, David Finn, asked for (4 years), but less than the 10 years prosecutors sought.  Stanford was convicted last year of defrauding customers using fake certificates of deposit issued by Stanford International Bank in Antigua, for which he is serving a 110-year prison term.  In 2 trials, Davis spent 5 days testifying against his 20-year boss and former college roommate.

In handing down his decision, U.S. District Judge David Hittner recognized Davis's early cooperation with prosecutors, which began weeks after the government seized Stanford's assets in 2009.  Nevertheless, even though Davis did not personally profit from the fraud in the same "playboy life enjoyed by Stanford," Davis made about $13 million over 21 years working for Stanford.

Davis is expected to report to prison in 60 days.

For further details, go to [Reuters, 1/22/13] and [NY Times, 6/15/12].