Stanford silent as the FBI hands him fraud charges

Financier Sir Allen Stanford was uncharacteristically silent as the FBI gave him papers detailing his alleged $8 billion (£5.6 billion) fraud, sources said today.

The Texan billionaire accepted the civil papers without a word and drove away after meeting agents at an agreed rendezvous point.

Sir Allen, 58, who was in hiding for two days, had contacted Justice Department officials and arranged the meeting in Fredericksburg, Virginia. FBI agents gave him Securities and Exchange Commission papers.

He was today due to meet his lawyers to examine accusations against his company. The papers include the allegations he faces and details on what assets were seized in the investigation.

Sir Allen was not placed under arrest, but voluntarily surrendered his passport. One FBI source said he was "extremely co-operative". An American TV report said he was with his girlfriend, Andrea Stoelker, when he was arrested. Sir Allen is believed to have flown to Washington DC soon after the securities commission announced he was wanted over a fraud affecting 50,000 investors.

His friend Ben Barnes said Sir Allen was "very depressed". Mr Barnes, a Washington lobbyist, denied the financier evaded the FBI but had no explanation for why it took him 48 hours to contact the authorities.

Sir Allen has retained lawyer Brendan Sullivan, who charges more than over £750 an hour, to defend him over the fraud allegations. Law enforcement sources in the US last night said criminal charges would soon be filed.

The London accountant responsible for auditing Sir Allen's banking empire denied any wrongdoing.

Celia Hewlett-Ola, 46, from Palmers Green, told The Times: "All of this has come as a complete surprise. I don't know anything.

"I have never had dealings with Mr Stanford, although my deceased father, the founder and owner of CAS Hewlett & Co, had dealings with him."