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Inspector: Some investor funds from Stanford scheme went to homes, accounts for girlfriend
HOUSTON (AP) ' A U.S. postal inspector says convicted fraudster R. Allen Stanford put some of the billions of dollars he allegedly stole from investors into two homes for a girlfriend and an account dubbed "Baby Mama Trust."
Clayton Gerber testified Wednesday in Houston federal court that he traced nearly $2.5 million of the $7 billion Stanford allegedly stole from investors to an account for Rebecca Reeves-Stanford.
She and Stanford have two children together and authorities have described her as one of Stanford's "outside wives." Stanford and his actual wife are getting divorced.
Prosecutors say the $2.5 million is part of $330 million they are trying to seize from nearly 30 accounts controlled by Stanford.
Stanford was convicted Tuesday of defrauding investors through a Ponzi scheme he operated for 20 years.