HOUSTON (AP) - A civil lawsuit filed by jailed Texas financier R. Allen Stanford and three executives of his now defunct company involves who pays their legal fees.
A hearing was scheduled Tuesday in Houston. The legal fees, in criminal and civil cases, are related to charges that Stanford and the others bilked investors out of $7 billion in a Ponzi scheme.
Stanford and three executives of his now defunct Houston-based Stanford Financial Group have pleaded not guilty to charges including money laundering and fraud.
Their legal fees are being paid by an insurance policy, but Lloyd's of London says the policy doesn't pay on charges of money laundering.
An appeals court in March ruled the insurer must continue paying until a lower court determines if money laundering was committed.
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