Defense Expert Witness: No Fraud in Stanford Int'l Bank's Annual Reports

The defense team for R. Allen Stanford continued examining expert witnesses on Thursday. The Houston financier's Ponzi scheme trial is now in its second month.

Defense Attorney Ali Fazel picked up his questioning of Morris Hollander, a CPA with fifty years of professional experience.  

Hollander testified that, in his opinion, Stanford International Bank’s annual reports contained no evidence of fraudulent financial reporting.  He also specified the bank’s use of international financial reporting standards, or IFRS, was appropriate given its position as an Antiguan-based company.

On cross examination, Hollander admitted that he had no certification in IFRS. Government attorney Andrew Warren also established multiple inconsistencies in Hollander’s testimony regarding the date the bank switched from U.S. to international accounting standards.

The date of the switch is significant, as the defense is arguing the bank’s use of IFRS freed it from some of the reporting requirements it would have had to follow under U.S. accounting standards.

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Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...