Allen Stanford jailed until trial

By Eileen O'Grady and Bruce Nichols

HOUSTON (Reuters) - A federal judge on Tuesday ordered Texas financier Allen Stanford, accused of a $7 billion (4.2 billion pound) fraud, held without bail until trial.

U.S. prosecutors had argued that Stanford, who faces life in prison if convicted on all charges contained in a 21-count indictment, had the means and motive to flee.

"The court determines that Stanford is a serious flight risk and there is no condition or combination of conditions or pretrial release that would reasonably assure his appearance," U.S. District Judge David Hittner said in an order that revokes a $500,000 bond that a magistrate had granted Stanford on Thursday.

Stanford, who spent the last 15 years living in the Caribbean where he was knighted by the Antiguan government, had a network of wealthy associates and had at least two passports, prosecutors told Hittner at hearing on Monday.

"We are very disappointed and we are going to appeal to the 5th Circuit," Dick DeGuerin, Stanford's lawyer said in a statement.

The billionaire, who is more accustomed to jetting around the globe in private aircraft, has been in custody since his arrest on June 18 in Virginia. He is currently being held in a federal detention centre 40 miles north of Houston.

Hittner has recent experience with a white-collar criminal jumping bond. Harris "Butch" Ballow, who pleaded guilty after being charged with fraud in 2002, failed to show for sentencing. Hittner held a status conference on Ballow's whereabouts in April, court records show.

The judge's decision to detain Stanford was characterized as unusual, lawyers said.