Trial adjourned for lunch. Set to resume at 2:15.
Judge Hittner returns. Calls jury in. Trial resumes, former CFO James Davis still under cross-examination.
Robert Scardino, lead defense counsel, questioning Davis on Davis' plea agreement to testify against Stanford.
Scardino draws out that, if prosecutors pleased with Davis testimony and they believe he's been a cooperative witness, that they could recommend the judge give a more lenient sentence than the one required by sentencing guidelines for the crimes Davis has admitted to. For crimes to which Davis has admitted guilt -- conspiracy to commit mail, wire and securities fraud -- Davis, now 63, faces a maximum of 30 years in jail.
Scardino questioning Davis re: transfers out of Soc Gen Swiss bank account to Stanford, financial advisors, funds and Davis himself. Davis contradicts self regarding $400 K he received from account. Davis had told government investigators he'd received money in wire transfer. When Scardino shows list of transfers, not containing the $400 K, Davis says it must have been a check.
Defense introduces Davis 2006 tax return into evidence. Wages, tips, income line, $1.96 million. Davis admits $400 K not part of this, nor listed on line for other income. Scardino: "You're going to amend this return to include the $400 K." Davis: "That's the plan, as soon as I've got the paperwork."
Defense enters into evidence check for $400 K from Stanford to Davis, drawn on Mellon International Bank. Same as before, not listed on 2006 tax return.
Defense introduces into evidence another check from Stanford to Davis, April 2006, this for $400,000, draw on Sterling Bank. Scardino, this wasn't reported either. "So if there was a wire transfer, you under reported income by $1.2 million."
Scardino requests Judge admonish witness re: truthfulness, inconsistency in testimony on checks. Judge tells jurors he elects not to do so, but it is up to them to weigh the evidence.
Defense turns to questioning Davis on "Crosswalk," band formed by Davis' two sons and one of their friends in 1997 and incorporated by Davis. Davis admits to having opened bank account to handle transactions by Crosswalk.
Defense presents as evidence check from Stanford to Crosswalk in 2004, on Sterling Bank, for $250K. Davis testifies to having received that and another check from Stanford for equal amount. Defense then shows statement of account for Crosswalk at Farmers & Merchants Bank in May 2004. Amount in account: 0. Goes in June from 0 to half million dollars. Defense shows how money transferred to Crosswalk account was transferred to Davis’ businesses in Baldwyn, MS. Scardino: “You convinced Mr. Stanford to give you checks for your businesses?” Davis: “No, he gave them to me, I presume for bonuses.” Scardino: “But they were clearly not used for what the check was indicated?” Davis: “No, sir.” Scardino: “Crosswalk was defunct?” Davis: “Yes, sir.”
Defense enters Davis' resume (circa 1995) into evidence. "Throughoutly experienced in all aspects of financial and business adminsitration and planning." Scardino: "Pretty tall cotton. You learned that at Baylor?" Davis: "No, learned at Stanford." Scardino: "Mr. Stanford taught you a lot." Resume includes with the line, "Possess strong leadership and decisionmaking qualities, as well as an ability to maintain confidentiality and trust." Davis says this was true for Mr. Stanford, but he lied to everybody else.
Defense walking Davis through e-mail Davis sent Stanford, Nov. 27, 2005. Scardino going point by point listing Davis responsibilities, as Davis outlined them in e-mail, with Scardino drawing admissions that these are Davis', not Stanford's responsibilities. Also that Davis expressed frustration that, while Davis considered himself Stanford's closest business confidant, that he was not being given enough of Mr. Stanford's time. Scardino seeking to make point that Davis was the one with real power.
Judge calls recess till 4 pm.