Insurer Lloyd’s refuses to pay jailed Texas financier’s latest legal fees; says it’s spent $6M

Insurer refuses to pay latest Stanford legal fees

HOUSTON — Insurance company Lloyd’s of London has told a judge it has spent more than $6 million on jailed Texas financier R. Allen Stanford’s oft-changing legal team and that it refuses to pay his latest legal fees.

The Tuesday hearing in U.S. District Court in Houston was part of a lawsuit Stanford and others in his company filed against the insurer. Lloyd’s says it doesn’t have to pay out on an insurance policy to pick up Stanford’s legal costs because money laundering charges against him voided the policy.

Stanford is on his fourth legal team since being indicted last year on charges alleging he orchestrated a massive Ponzi scheme and defrauded investors out of some $7 billion. He denies wrongdoing.

Stanford told the judge Tuesday that he doesn’t know what work many of his prior attorneys actually did.