In The News

Stanford's Lawyers Subpoena Attorney of Key Witness

Allen Stanford

In an unusual move, attorneys for accused Ponzi mastermind Allen Stanford have issued a subpoena to compel the attorney for the prosecution's star witness to testify, CNBC has learned.

David Finn, the attorney for former Chief Financial Officer James Davis, tells CNBC that United States Marshalls served the subpoena at his office Friday.

Davis, who was also Stanford's college roommate, wrapped up roughly four days of testimony earlier this week, in which he implicated his former boss in the alleged $7 billion scheme.

Davis pleaded guilty in 2009 to three felony counts. Defense attorneys allege his testimony was fabricated in hopes of receiving a lighter sentence.

Stanford, 61, is on trial in Houston on 14 counts. Prosecutors could rest their case as soon as today — day 15 of the trial.

That means Finn could be on the witness stand as early as Monday, although defense attorneys have been careful not to tip their hand about their strategy.

Calling the attorney for the main witness against their client is not only an unusual move, it could be risky for the Stanford defense team. While they apparently hope to attack the plea agreement Finn arranged for Davis, Finn also could be privy to information that damages Stanford in the eyes of the jury.

The defense has also indicated it plans to call Stanford himself to testify — a strategy that, if they follow through with it, could involve even bigger risks.