U.S. District Judge David Hittner has set a January 2011 start date for the trial of Texas financier R. Allen Stanford. Stanford is accused of bilking $7 billion out of investors with a massive Ponzi scheme through his now defunct Stanford Financial Group.

The criminal defense attorneys on the case had asked for a summer of 2011 trial date, citing the 5.5 million documents to be sorted in order to prepare their case. The prosecutor said that it has been six months since Stanford was indicted and everyone involved or affected by the case is interested is seeing it move along.

Stanford, 59, offered huge returns to those who invested in certificates of deposit from his Stanford International Bank in Antigua. According to prosecutors, Stanford and other executives created fake balance sheets and spend money on a lavish lifestyle. In addition to Stanford, three company executives face charges. Another former executive has pleaded guilty to charges and is cooperating with the prosecution.

Judge Hittner also held a hearing on whether attorney's fees would be paid by an insurance policy held by Stanford's executives for just such legal fees. Attorneys representing Lloyd's of London said the insurer does not cover money laundering. Attorneys representing Stanford and the company executives argue the allegations have not been proven. If the policy is denied, taxpayers will likely foot the bill for legal services, which is estimated to run $20-30 million for all four defendants. A ruling was not made, and the judge asked for both sides to submit additional motions by January 7.

The Texan accused of stealing billions of dollars from investors has been returned to a federal detention center. Allen Stanford was taken to the hospital last week after experiencing a very elevated heart rate just hours before he was to appear in federal court in Houston. Stanford was diagnosed with a non-life threatening leg aneurysm that can be treated with surgery.

Stanford, 59, is accused of creating a $7 billion fraudulent investment scheme, which, according to U.S prosecutors, included selling fake certificates of deposit to his Stanford International Bank in Antigua and then bribing local accountants and regulators to ignore the scam. Stanford has pleaded not guilty to 21 felony charges. He has been held without bail in a federal jail in Conroe Texas since his arrest in June.

A federal judge overseeing the Allen Stanford fraud case will not allow a Texas criminal lawyer to withdraw following an apparent dispute over compensation.

Attorney Dick DeGuerin filed a motion with the court to withdraw after the Washington, DC based law firm Patton Boggs announced last Friday it would take over the case. In his motion, DeGuerin indicated that he had sought assurances that he would be paid for legal fees and expenses and had not received them. The assets of Stanford, the Texas financier accused of defrauding investors out of 7 billion dollars, were frozen by a court appointed receiver and legal consultants have not yet been paid.