THE Antiguan Government yesterday sought to distance itself from Allen Stanford, the Texan billionaire financier who is now in a US federal jail facing charges that he directed a US$7-billion fraud against investors.

"The current Government, which assumed office in March 2004, did not sell any Crown lands to Stanford, received no loans from Stanford, and was not a beneficiary of any largesse of Stanford. In fact, R Allen Stanford considered this administration as his enemy," the Antiguan Government said in a statement.

The statement was an apparent response to an allegation that the Government was a partner in Stanford's activities that landed him in trouble with US federal prosecutors.

It was not clear, however, who made the allegation and when it was made.

The Government also said that it had stripped Leroy King of the post of administrator of the Financial Services Regulatory Commission, after it learnt that King had "facilitated Stanford's Ponzi Scheme for personal gain".

King, the Government said, "is now the subject of pending extradition proceedings to stand trial in the US, with the full co-operation of the Government of Antigua and Barbuda".

King, along with Stanford, Gilbert Lopez, the chief accounting officer at Stanford Group, and Laura Pendergest-Holt, Stanford's chief investment officer, have all been indicted by US authorities.

The US Justice Department alleged that Stanford's bank in Antigua was used to bribe officials there to defraud at least 30,000 investors through the sale of certificates of deposit.

Stanford faces charges of conspiracy to commit securities, mail and wire fraud.

Last year February, Antigua's Senate voted to seize Stanford's property, after the lower House of Parliament also voted to confiscate about 250 acres, including businesses that formed the basis of Stanford's empire on the twin-island nation.

Stanford rose to prominence by sponsoring sporting events in Antigua, most notably cricket, naming a Twenty-20 tournament in his honour and providing a lucrative purse for the winner.

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