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Houston - The jury weighing evidence against Allen Stanford
said on Monday it was unable to reach a verdict in the trial of the former
Texas financier.
Stanford, on trial in federal court in Houston, is accused
of running a $7.1bn Ponzi scheme.
After the jurors sent a note saying they were unable to
reach a verdict, US District Judge David Hittner called them into the courtroom
and instructed them to keep deliberating, saying the trial had been costly in
time and money. "I'm going to ask that you continue your
deliberations," he said.
The jury started deliberating last Wednesday and has worked
for more than 20 hours.
It was not clear whether jurors had failed to reach a
verdict on any of the 14 counts against Stanford, or whether they had failed to
do so on just some of the counts. Failure to agree on all counts could result
in a mistrial.
Philip Hilder, a former federal prosecutor who has been
following the trial, said it was not unusual for a jury to be deadlocked
initially in a complex trial such as this one.
If they remain deadlocked, it could turn into a hung jury,
but the more common outcome is that the jury comes up with a unanimous
decision, said Hilder, a white-collar defence attorney in Houston.
Jurors went home for the day and were due start again at
15:30 GMT on Tuesday. Hittner said if the jury again could not reach a verdict,
he would ask whether jurors had reached agreement on any of the charges.
Stanford turned to family members in the courtroom, smiling,
after reading the note from jurors.
A mistrial would be a major setback for the government in a
case that has already dragged on for three years since federal agents shut down
Stanford's financial operation in February 2009.
While in jail awaiting trial, Stanford suffered a beating
that left him with brain damage. He then became addicted to anti-anxiety
medication. His lawyers said he had lost his memory and was not competent to
stand trial.
Judge Hittner declared him competent in December and the
trial began on January 23.
During the trial, prosecutors said Stanford used Stanford
International Bank in Antigua as his own personal ATM, spending the deposits of
his investors to finance a playboy lifestyle.
The government's star witness, former Stanford aide James
Davis, testified how he and Stanford funnelled money from the bank in Antigua to
a secret Swiss bank account that Stanford tapped for his personal use.
Stanford's lawyers, however, made a blistering
cross-examination of Davis, who admitted to being a liar and to destroying
evidence. Legal experts said the cross-examination undermined Davis'
credibility as a witness. Davis has pleaded guilty to three criminal
counts in a plea agreement.
During the trial, defence lawyers portrayed Stanford as a
visionary who was not involved in his firm's daily activities. They blamed
Davis for any fraud, and argued that Stanford's businesses were viable until the
government shut his operations down.
