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HOUSTON — Jailed financier R. Allen Stanford and three of his former company executives have racked up millions of dollars in legal fees as they defend themselves against charges they bilked investors out of $7 billion in a massive Ponzi scheme.
An insurance policy has thus far covered their legal bills. But the insurer, Lloyd’s of London, is trying to turn off the financial spigot by having the policy voided. Stanford and the ex-executives have sued Lloyd’s.
The question of whether the insurer will continue paying is in the hands of U.S. District Judge Nancy Atlas, who is holding a court hearing on Tuesday on the issue. The hearing, which could last up to four days, might also provide a preview of the upcoming criminal trials in the case.