HOUSTON, (Reuters) – Allen Stanford, the Texas  financier accused of an $8.5 billion fraud by U.S. regulators,  used client funds to pay for his jet-set lifestyle, the  Antiguan liquidator in the case said on Monday.

“I believe that depositor funds in Stanford Bank were moved  into other Stanford Group companies to fund the expansion and  the running of the Stanford empire,” said Nigel Hamilton-Smith,  the Antiguan liquidator of the firm’s offshore bank.

Stanford used the money to pay for jets, lavish homes and  yachts, Hamilton-Smith told Reuters.
The U.S. Securities and Exchange Commission has alleged  funds from certificates of deposit issued by Stanford  International Bank Ltd in Antigua propped up a massive fraud.

Before the SEC leveled fraud charges against Stanford, his  personal fortune was estimated at $2.2 billion by Forbes  Magazine. He was a generous sports patron and owned homes in  Antigua, St. Croix, Florida and Texas.