Sir Allen Stanford found by FBI in Virginia, turns in passport

'Maddof 2' Sir Allen later surrendered his passport and said he "would not flee". Earlier a court in Dallas, Texas, where the Securities and Exchange Commission (SEC) has lodged its 60-page fraud complaint, had requested that he turn in his passport.

Stanford was located in the Fredericksburg, Virginia area, the FBI said in a statement.

Earlier this week, the SEC accused Sir Allen of making false claims to up to 50,000 investors about the returns he could get for their money.

On Thursday, more details were also disclosed on about Sir Allen's links with leading politicians in Washington, where he has spent more than £5 million wooing lobbyists and politicians in recent years, including donations of £22,000 to Barack Obama's presidential campaign.

The President's aides said the money had been donated to charity as a result of the allegations. Sir Allen's father, James, who lives in Mexia, Texas, said he could not locate his son and was unable to reach him on his mobile phone. Mr Stanford, 81, said: "I cannot imagine, I cannot believe, I will not believe what is being alleged actually happened. I cannot believe that my son would run. When I spoke to him he just told me to watch the papers. He said something, stuff that had been rumoured, but nothing like this. I don't know where he is. I'm worried for his safety.'' More

Wealthy depositors turned away from Allen Stanford's banks in Antigua, Mexico, Colombia, Venezuela, and Panama. Eastern Caribbean Central Bank fears repercussions of bank runs putting economies of Antigua and Barbuda, Anguilla, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines in jeopardy and that means English-speaking countries of Caribbean will join their French counterparts in rebellion