June 19, 2012 / 5:58 AM / 6 years ago

Stanford Financial exec to plead guilty: report

Laura Pendergest-Holt (L), the first person arrested in the $8 billion Allen Stanford fraud investigation, walks from the Federal Courthouse with attorney Dan Cogdell after posting a $300,000 bond in Houston February 27, 2009. REUTERS/Richard Carson

(Reuters) - Laura Pendergest-Holt, former chief investment officer for Allen Stanford, has agreed to plead guilty and receive a three-year prison sentence for her role in a $7 billion fraud, Bloomberg reported, citing three people familiar with the matter.

Earlier this month, former billionaire Stanford was sentenced to 110 years in prison for running the fraud in which he stole money from his investors to finance an extravagant lifestyle in the Caribbean.

Pendergest-Holt will plead guilty to a single obstruction of justice charge, Bloomberg said.

Pendergest-Holt was indicted on obstruction of justice charges and conspiracy charges related to her allegedly false testimony to the U.S. Securities & Exchange Commission, which was investigating the fraud.

The U.S. Justice Department and Pendergest-Holt’s lawyers could not be reached for comment outside regular U.S. business hours.

Reporting by Jochelle Mendonca in Bangalore

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