Flamboyant Texan brought down to earth

By Jason Szep

BOSTON (Reuters) - Allen Stanford, the once high-flying Texas billionaire with a Caribbean knighthood and a penchant for publicity and cricket, has been brought down to earth with a thud as he faces criminal charges.

The founder and chairman of Stanford Group once credited his grandfather with giving him "the inspiration to dream" and "an unwavering desire to build a business that is second to none." Since February, that business has all but evaporated.

Friday, the brash 59-year-old moustachioed financier was indicted on fraud, conspiracy and obstruction charges after surrendering to the FBI, four months after regulators accused him and three of his companies of a "massive ongoing fraud."

The U.S. Securities and Exchange Commission says Stanford and two fellow executives fraudulently sold $8 billion in high-yield certificates of deposit issued by Stanford International Bank Ltd in Antigua.

In what may be a preview of his defence, Stanford asserted in an April interview with Reuters that his companies were well-run until the government seized them in February. Asked why the SEC singled him out, he replied: "I don't know."

"Maybe post-Madoff they needed to make somebody the scapegoat. Hell if I know," he said.

Many burnt investors, including thousands across the United States and Latin America, have clamoured for criminal charges, accusing Stanford of being from the same mould as Bernard Madoff, who admitted in March to orchestrating the biggest financial swindle in Wall Street history.

Friday's indictment and the SEC's revelations of Stanford's empire -- stretching from the Caribbean island of Antigua to Houston, Miami, Caracas and Europe -- complete the picture of a finance king who somehow lost his Midas touch along the way.