Stanford executive pleads guilty to fraud, as Sir Allen hospitalised

Stanford Financial Group’s second in command James Davis has pleaded guilty to charges connected to the alleged $7 billion fraud at the company, as Sir Allen Stanford is hospitalised.

Davis pleaded guilty to three felony counts including fraud and obstruction, and agreed to forfeit $1 billion. He could receive a maximum sentence of 30 years.

Stanford Financial Group has been accused of perpetrating a $7 billion fraud – selling certificates of deposit through Stanford International Bank and offering large returns. It is alleged that they misappropriated most of the funds.

It is thought that the scheme is similar to the 'Ponzi' scheme run by Bernard Madoff.

Stanford (pictured) was due to attend court separately to Davis, but was taken to hospital yesterday with an irregular heart beat and a high pulse.

He has pleaded not guilty to all the allegations brought against him.