* Stanford traveled to Tripoli in January
* Met with Libyan Investment Authority CEO
* Judge asked to reconsider detention order
(Recasts first paragraph, adds detail)
By Anna Driver
HOUSTON, July 7 The Libyan government had
invested $500 million of its cash reserves with accused
swindler Allen Stanford's firm as of late 2008, a court filing
showed on Tuesday.
And Stanford and Andrea Stoelker, his girlfriend, flew to
Tripoli on Jan. 25, 2009 because Libya was considering
increasing the amount it had invested with him, according to a
Stanford met with several officials, including Mohamed
Layas, chief executive officer of the Libyan Investment
Authority, the filing said.
A representative from the Libyan embassy in Washington was
not immediately available to comment. It was not clear whether
the investment was recouped before the U.S. government
shuttered Stanford's network of financial firms.
U.S. prosecutors cited the 2009 trip to Libya at a day-long
detention hearing before a federal judge in Houston on June 29
as evidence that Stanford was a flight risk, but Stanford's
attorney said it was a regular business trip.
The Texas financier, who faces criminal and civil charges
related to a $7 billion fraud, was ordered by U.S. District
Judge David Hittner to remain in custody until his trial last
Dick DeGuerin, Stanford's lawyer, is fighting that order
and asked the judge to reconsider it in the court filing on
Federal prosecutors had argued that Stanford would not
stick around for his trial, citing, among other factors, the
billionaire's residence outside the United States, frequent
trips on his private jet, a missing but expired passport and a
global network of wealthy contacts.
The passport turned up, however, after the detention
hearing. It had been seized along with Stanford's other
possessions by a court-appointed receiver, prosecutors said in
a court filing last week.
"The government's lack of candor regarding the expired
passport is egregious," DeGuerin said in the court filing. "The
government repeatedly claimed no knowledge of the whereabouts
of Mr. Stanford's expired Antiguan diplomatic passport, despite
the fact that the passport had been in the possession of the
receiver for months."
That alone is grounds for reversal of the detention order,
the filing said.
DeGuerin has said that he plans to appeal Hittner's
decision to the 5th Circuit Court of Appeals in New Orleans.
The government has accused Stanford and others of running a
"massive" Ponzi scheme with client funds from certificates of
deposit issued by the firm's offshore bank in Antigua.
To cover their tracks, prosecutors have said Stanford
falsified accounting documents and bribed the regulator with
oversight of Stanford International Bank in Antigua, according
to the 21-count indictment.
Stanford has pleaded not guilty to the charges.
(Reporting by Anna Driver; editing by Gerald E. McCormick and