ALLEN STANFORD - ONE STEP CLOSER TO HANDCUFFS?

The WSJ is reporting that Allen Stanford's #2, James Davis, has decided to cooperate with the Feds in the case that began with the SEC's accusations against Stanford and his banking empire for civil fraud.

http://blogs.wsj.com/law/2009/03/24/alarm-bells-for-allen-stanford-financials-no-2-to-cooperate-with-the-feds/

Earlier this month, when the SEC summoned Stanford to testify, the Texas banker took the 5th. Obviously, his lawyers worried that anything he said in a civil hearing could be used against him in a criminal matter. Davis also refused to testify.

Now Davis, who was Stanford's Number Two in the banking dynasty, appears to have done an about-face. It means that Stanford's worst nightmares are now coming true.

Although the two go way back --- they were roommates in college --- Davis must have been convinced that if (or, better put, when) criminal charges come down, he'll also be named. The best defense being a strong offense, it looks like Davis has decided to save his own neck.

Presuming Davis knows where the skeletons are buried, the Feds are using Davis to maneuver Allen Stanford one step closer to handcuffs.

And that is, apparently, long overdue. According to Britain's Sunday Telegraph of February 21, 2009: "Jeffrey Robinson, one of world's leading experts on international financial crime, said, 'Stanford first came on to my radar 12 to 15 years ago when I was looking at bank activities in Antigua. I know an FBI agent who has been trying to pin [drug] charges on him for a decade and prosecutors who have been looking at him for many years.'"