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Convicted financier ordered to pay $5.9 billion fine

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Fake CDs used in Ponzi scheme

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Stanford serving 110-year prison term

By Jonathan Stempel

Jan 30 (Reuters) - A federal judge ordered an end to the

U.S. Securities and Exchange Commission's 16-year-old lawsuit

over Allen Stanford's $7.2 billion Ponzi scheme, directing the

financier and two former colleagues to pay sums that will go

largely uncollected.

In a decision on Wednesday, Chief Judge David Godbey of the

Dallas federal court imposed a $5.9 billion civil fine on

Stanford, who is serving a 110-year prison sentence after being

convicted in 2012 of defrauding about 18,000 investors.

Godbey ordered Stanford Financial Group's former chief

financial officer James Davis to pay $17.66 million, including a

$5 million fine, and former chief accounting officer Gilberto

Lopez to pay $3.42 million over their roles in the fraud.

Authorities said Stanford sold fraudulent high-yielding

certificates of deposit through his Antigua-based Stanford

International Bank during a two-decade fraud, and used investor

money to make risky investments and fund a lavish lifestyle.

The judge also deemed billions of dollars owed by various

Stanford entities satisfied by court-appointed receiver Ralph

Janvey's recovery of more than $2.5 billion for fraud victims,

including $1.2 billion from Toronto-Dominion Bank ( MLWIQXX ).

Godbey said there was "no just reason for delay" in ordering

the payments and closing the case.

Once considered a billionaire, Stanford was declared

indigent in 2010. Now 74, he is ineligible for release from

prison until 2103.

Lawyers for Davis and Lopez did not immediately respond to

requests for comment. An SEC spokesperson declined to comment.

Davis was the top government witness at Stanford's trial,

testified against his former college roommate, and was sentenced

in 2013 to five years in prison. Lopez was convicted separately,

and sentenced in 2013 to 20 years in prison.

The SEC sued Stanford in Feb. 2009, two months after the

late swindler Bernard Madoff was criminally charged with running

a much larger Ponzi scheme.