Stanford faces fraud charge after surrendering to FBI

TEXAS billionaire Allen Stanford is to appear in court today on fraud charges after surrendering to FBI agents.

Authorities plan to unseal an indictment charging Stanford, officials said.

He surrendered yesterday and is to appear in federal court in Virginia today.

The Securities and Exchange Commission filed civil charges earlier this year accusing Stanford and his top executives of conducting a multi-billion dollar fraud by advising clients to buy certificates of deposit from Stanford International Bank.

The lawsuit charged that the bank advertised in a brochure touting a conservative investment philosophy. Instead, the bank's portfolio was used by Stanford "to acquire private equity investments and real estate", the suit says.

An amended complaint accuses Stanford and his finance chief, James Davis, of conducting a "massive Ponzi scheme" in which early investors were paid returns from money put in by later investors.