LAS VEGAS (ABP) — An accused swindler who allegedly traded on his Southern Baptist faith in business dealings owes more than a quarter-million dollars in gambling debt, according to a lawsuit filed by a Las Vegas casino Sept. 1.
Allen Stanford is awaiting trial in jail on charges of orchestrating a $7 billion Ponzi scheme. He refused to deal with anyone associated with the gambling business because he claimed to be a Southern Baptist, according to the gaming website Gambling 911.
The Bellagio resort on the Las Vegas Strip, however, claims Stanford signed for 14 gambling "markers" (check-like documents acknowledging a gambling debt) totaling $258,480 in the month before regulators shut down his empire in February.
Former billionaire Allen Stanford, facing charges of fraud, now is also accused of not paying gambling debts.
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Stanford, 59, recruited his old Baylor University roommate James Davis, 60, as his chief financial officer of the Stanford Financial Group, headquartered in Houston with offices in Memphis, Tenn., and Antigua. Davis brought in Chief Investment Officer Laura Pendergest-Holt, 35, whom he met at First Baptist Church in Baldwyn, Miss., where he was a Sunday school teacher.
In February, the United States Securities and Exchange Commission charged all three with selling about $8 billion of so-called "certificates of deposit" while misrepresenting to customers how the money was being invested.
In March Bloomberg reported that religion was a part of boardroom culture at Stanford Financial. Davis, who left First Baptist Church of Baldwyn to launch LifeWay Community Church in nearby Guntown, Miss., would routinely clasp the shoulders of employees, look them in the eyes and pray for them, one former executive told the news service.
Another former employee said Davis always opened meetings in the Memphis office with prayer. A month before his arrest, Davis sent an e-mail to a friend saying, "I'm praying for you."
Before he stopped attending services at LifeWay Community earlier this year, Davis reportedly would often stand before the altar on Sunday mornings to lay hands on congregants who had problems or wanted to be saved.
Another Bloomberg story said financial advisers drew on church and community ties to find customers. One e-mail from a supervisor pushing his team to sell more CDs quoted Proverbs 3:11: "Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows."
In a 2004 training video a Stanford financial adviser described praying with a dying man before convincing him that the adviser was the person the man wanted to care for his family after he was gone.
Stanford surrendered to authorities on June 13. Justice Department officials say he, three associates and a Caribbean regulator swindled about 5,000 investors with an elaborate Ponzi scheme. He is being held without bail until his trial.
Davis has pleaded guilty to conspiracy, fraud and obstruction charges and agreed to cooperate with federal prosecutors. He could face up to 30 years in prison.
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Bob Allen is senior writer for Associated Baptist Press.