We noted recently that when it comes to compliance, the CFO plays a critical role. The PCAOB, in fact, has suggested to auditors that they focus their attention on the CFO when it comes to small company audits. Federal investigators wasted no time focusing their efforts on the CFO of the Stanford Financial Group, James Davis, who CFO.com says will now cooperate with the prosecution.

This is a blow to R. Allen Stanford, who some feel ran a massive fraud. Davis may be know-all sort of witness. He had been with Stanford for a long time; they were roommates back at Baylor. One Stanford employee has already been criminally charged, CIO Laura Pendergest-Holt. We'll see if Davis' cooperation leads to other indictments.  

For more:
- here's the article

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