Inspector: Some funds went to Stanford girlfriend

By Juan A. Lozano

Associated Press

Published: Wednesday, March 7 2012 1:45 p.m. MST

In this courtroom sketch R. Allen Stanford turns to reassure friends and family members in the gallery while Judge Hittner reads the guilty verdict in 13 out of 14 charges, in Houston, Tuesday, March 6, 2012. Stanford, once considered one of the wealthiest people in the U.S., with a financial empire that spanned the Americas, was convicted Tuesday on charges he bilked investors out of more than $7 billion.

Houston Chronicle, Ken Ellis, Associated Press

HOUSTON — A U.S. postal inspector says convicted fraudster R. Allen Stanford put some of the billions of dollars he allegedly stole from investors into two homes for a girlfriend and an account dubbed "Baby Mama Trust."

Clayton Gerber testified Wednesday in Houston federal court that he traced nearly $2.5 million of the $7 billion Stanford allegedly stole from investors to an account for Rebecca Reeves-Stanford.

She and Stanford have two children together and authorities have described her as one of Stanford's "outside wives." Stanford and his actual wife are getting divorced.

Prosecutors say the $2.5 million is part of $330 million they are trying to seize from nearly 30 accounts controlled by Stanford.

Stanford was convicted Tuesday of defrauding investors through a Ponzi scheme he operated for 20 years.

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