Sucks to have your assets frozen…
WSJ: The government is seeking $1 billion from [Stanford CFO Jim Davis, who has pleaded guilty].
Mr. Davis doesn’t have the money, his attorney David Finn said.
Mr. Davis’s assets have been frozen. He is living in Michigan and working a $10-an-hour manual labour job on a family farm in order to pay for his legal fees, Mr. Finn said.
Meanwhile, Allen Stanford’s celebrity lawyer is trying to quit because Stanford’s assets have been frozen, too, and he has no money to pay his legal fees.
We have to say… this doesn’t seem fair.
Defending yourself in a white-collar trial like this can cost $5-$10 million or more. We understand why Stanford’s victims would not want him spending the money he allegedly stole from them defending himself. On the other hand, he hasn’t been proven guilty yet. And it doesn’t seem fair that he can only defend himself with an overwhelmed public defender, either.*
UPDATE: After thinking about this (and reading some of the comments), I’ve changed my mind. Stanford is no more entitled to an expensive defence than anyone else. I still don’t like the presumption of guilt that goes with freezing all the assets, but in this case, the alternative is worse (and a judge is involved in the freezing, which helps). So keep those assets frozen. (And, yes, I imagine he has billions stashed around the world that the authorities have no idea about, much less have already frozen.)
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.