By Anna Driver
HOUSTON (Reuters) - Allen Stanford's former top deputy and college roommate said on Thursday he lied to investors about the health of Stanford's offshore bank.
James Davis was testifying at the criminal trial of his former boss in federal court in Houston. Stanford is accused of running a $7 billion Ponzi scheme centered on fraudulent certificates of deposit issued by his bank in Antigua.
"I lied about the truthfulness of the statements of Stanford International Bank Limited," Davis testified on Day 9 of Stanford's trial.
Davis, 63, has pleaded guilty to charges of fraud, conspiracy and obstruction as part of a plea deal with federal investigators. He is the only person to have pleaded guilty in the alleged Ponzi scheme.
His testimony pits him against his one-time close friend and former college roommate at Baylor University in Waco, Texas. During Davis' testimony, Stanford alternated between listening intently and scribbling notes.
Davis was the chief financial officer of Antigua-based Stanford International Bank. Blaming him for the alleged scheme is a key part of Stanford's defense strategy.
Davis also told the jury that Stanford opened his bank in Antigua to escape scrutiny from U.S. regulators.
"He didn't feel he could go through that rigorous regulatory vetting," Davis said.
Davis, looking frail and wearing a suit that was clearly too large for him, has been free on $500,000 bond. He described his former boss as a charismatic dictator who managed employees with "money, flattery, intimidation and fear."
(Reporting By Anna Driver; Editing by Eddie Evans and Richard Chang)
