Alleged Ponzi Schemer Judged Unfit to Stand Trial

Jailed Texas billionaire R. Allen Stanford is mentally impaired and incompetent to stand trial, a federal judge ruled yesterday. Psychiatrists testified that Stanford, who is accused of masterminding a $7 billion Ponzi scheme, is suffering from a major depressive disorder, an addiction to anti-anxiety medication, and a brain injury he suffered in a jail fight.

Stanford's trial on securities fraud and money laundering charges will now likely be delayed until the second half of this year, the Wall Street Journal reports. The judge rejected a request for Stanford to be released so he could be treated at a private facility. He ordered that Stanford be sent to a federal prison medical facility for treatment, and suggested the Federal Medical Center in Butner, NC—part of the same complex that houses Bernard Madoff.