During the trial, Stanford's defense lawyers argued that his banking disclosures complied with internationally accepted accounting standards. They also contended he had sufficient assets in an array of private enterprises to repay all investors. They said Stanford was consolidating these companies onto the bank's balance sheets when the U.S. Securities and Exchange Commission sued him for fraud and seized his businesses in February 2009.
Federal Judge
The federal judge overseeing the SEC case in Dallas appointed a receiver to marshal and liquidate his holdings to repay investors.
"He sank billions to keep afloat his businesses in the Caribbean," Stellmach said, describing Stanford's private ventures as ''money pits.''
By 2008, the bank owed investors $7 billion that didn't exist, Stellmach said.
"Stanford had been digging that hole for years with his lavish lifestyles and loser companies," he said.
Stanford secretly borrowed $2 billion from the bank, the government said. Prosecutors told jurors that was enough money to build Houston's Reliant Stadium and buy the city's National Football League franchise, the Houston Texans, and still have enough money to own the local National Basketball Association team, the Houston Rockets.
Fazel told the panel there are gaps in the "evidentiary bridge" built by prosecutors and cautioned jurors not to leap to the conclusion that Stanford is guilty.
"This case isn't about Reliant Stadium, it's not about Rockets and it's not about the Texans," Fazel said. "It's about assumption, presumption, guesses and reasonable doubt."
Challenged Credibility
Robert Scardino, another of Stanford's attorneys, challenged the credibility of former Stanford Chief Financial Officer James M. Davis, whom he described as the government's "key witness."