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August 2009

“Blood Oath” Sealed Stanford Deal, Court Is Told

HOUSTON — R. Allen Stanford’s relationship with the chief regulator of his Antigua bank was closer than most.

James M. Davis, Mr. Stanford’s chief financial officer, leaving court on Thursday with his wife, Lori, and lawyer, David Finn.

28stanford395At a meeting in 2003, they became blood brothers, cutting their wrists and mixing their blood in a “brotherhood ceremony? that Mr. Stanford’s chief financial officer said promoted an elaborate scheme to hide a multibillion-dollar fraud from American and other regulators.