12:59 P.M.

HOUSTON, Texas – Former Stanford Financial Group accountant Henry Amadio continues on the stand after a late-morning break.

Amadio, thus far, has testified that his concerns grew as he saw how much money “The Shareholder,” company president R. Allen Stanford, was taking from CD deposits in Stanford International Bank Ltd. and spending it on a wide range of expenses like his commercial airlines, major construction programs and others associated with the scores of Stanford affiliated companies.

From 2004 until 2006, those financial demands hit $253 million, Amadio said, and he became concerned that the money never would be repaid to the bank, based in Antigua.

By the end of 2007, he said Stanford’s commercial airlines sucked more than $330 million from the bank.

He also said that around the time of an investigation by the U.S. Securities & Exchange Commission, he was ordered to put all company financial reports onto an external drive that couldn’t be accessed by anyone but the person who held it.

(BTW, correct spelling of co-defendant to go on trial later is Mark Kuhrt.)

Here, his testimony resumes under questioning by Gregg Costa, assistant U.S. attorney:

• • •

11:50 - Judge, jury return.

(Costa - to Amadio - Remember Stickey Wicket? Eaten there?) Yes. (photo of it ... received from bank?) Approx $25M. (Back to report at end of 2007, SW was part of Stanford Co.... look at Sun Printing & Publishing?) Local, Antiguan newspaper, owned by R. Allen Stanford. Owned all companies on he sheet. (Davis own any of them?) No. (Anybody else an owner?) Nobody else. (Sun newspaper had over $11M in CD money?) Yes. (Stanford Eagle?) Ownership of vessels, boats. Mr. Stanford’s yachts. think were 3 or 4. (Company to pay for them?) Yes. (Eagle had $18.9M in CD deposits?) Yes. (Stanford 2/0/20 Ltd.?) formed for Cricket tournament. A type of Cricket. (End of ’07?) $21.4M to Cricket company. (Another Cricket entity?) Yes, Stnford 20/20 LLC, more U.S> Virgin Island based. Had similar function, different locations. To oversee 20/20 Cricket tournaments. (End of ’07 fro Cds?) About $7.7M. (So Cricket toals?) About $29M

(Exhibit?) Magazine for 2006 Cricket tournament, sponsored by Stanford 20/20. (Pg 56 in program - ad?) Yes, picture says plans Carib Star, advertsing tournament. Ad says spends $2.75M to advertise but RAS took it to the skies on 2 airlines he owned. (Learned about large prize at tournament?) Yes. (Amount?) $20 million. (Judge -to winner?) Yes. (PHoto of RAS at Tournament?) Yes. (Shows him photo) Sees RAS in it. Case holds $20M. (Money from CDs?) OBJECT - Witness has not established that all the money came form the bank. COSTA -WE have. (JUDGE - if you disagree with that, you need to say so, he said to Amadio.) I don’t disagree.

(Costa - 12:01 - Report shows money from bank to Cricket companies?) Correct, $29M at end of 2007. (More in 2008?) I believe so, don’t remember. (Any doubt that money on that spread sheet came from SIBL?) No doubt that those amounts came from Stanford International Bank. Wire transfers from Treasury Dept.Can

(By 2007, how much from bank to RAS companies?) $1.6B (How know that?) Combined profits of bank were not enough to cover $1.6B, not even close. (Asks about $$ to Venezuela) To form bank in Venezuela, expenses. (Document - report?) Yes, Dec. 2008. (Look at Cricket company - $24 M from prior year, total by end of 2008?) $23.9M (Money to tournaments ... prize, source of concern in acct dept?) (Did Dvais say he was concerned?) He made a comment about the size of the amount, $20M. He expressed concern that this was decision by The Shareholder for that amount. (Davis wasn’t thrilled for Cricket?) OBJECT - SUSTAINED (Did Davis say happyor not?) Not happy. (Airlines, $300M-plus. Davis’ view on that?) His views were similar, showing concern that money continued to losing entities. (Did he want to shut them?) Initial talks, yes. (When Davis wanted to to that, did it happen?) No, any decision had to be run by Mr. STanford, to make final decision and approval to deal with selling of any of his entities. (One sold or shut down?) 2008, they were shut down and sold. (DAvis on own?) No.

(Judge - other airlines flying them now?) Govt. owns part of an airline. Don’t know.. abou tothers. (WEre they bought and up and running now?) No, not up and running.

(2008 - year-end - what was total money from bank to RAS companies?) $2.034B

(How much more went into 2008?) About $400M (Ws growth of money out of bank a concern?) Continued to grow the balance of shareholder funding, concerns was it every to be paid back. (Davis said to you? About repayment? Doubt?) Uhm, it was never mentioned that it was ever going to be repaid. (Comment by Davis in meeting?) Yes, in discussion on whole budget of all companies.. how much being spent. Concern of this growing fudning need. (Also concerns about general budget? Davis concern??) Yes. (Were you?) Yes. (Davis liked spending?) No. (Concerns ... did Davis add to your concerns?) Yes, said that the Emperor has No More Clothes. took that to mean no more money to pay debts. Said it more than once ... 2008 and in 2007.

(Who owed that money to bank?) Allen Stanford. (Earlier years, documents on loans?) I did. (When saw them?) This was time and prep for IRS audits in ’06 or ’07. Asked to make copies and proper docs. (Who kept promissory notes?) Kept in office with Gil Lopez. (Exhibit - recognize it?) Yes I do. (What is it?) Promissory notes. (How Lopez kept it?) Yes, this is the file. (One of two?) saw both files. (Where is second file?) NO I don’t.

(This is one of two, says 1999) Yes, it is.

(Exhibit - 12:14 - type of promissory note while at Stanford?) Yes. (Dec. 2002 - $168M) RAS and SIBL. )2nd graph ) Sum shall bear interest at rate of 10% per year. $184M principal due Dec. 31. 2003. (In yr. RAS to pay back plus interest?) Yes. (2nd pg - signature. Next doc - promissory note Dec. 31, 2003 - Now how much?) $330M (graph to repay by 2004?) $346.5M (pg 5 - show how $330M calculated?) yes. (Lists note from prior year and interst?) yes. (So, did RAS pay other note off?) No. (Rolled into next note?) Yes, that is correct. (List money to other companies into note?) Yes.

(You started tracking $$ from CDs to other companies. Notes from ’06 and ’07?) No notes for those years. (Change fact he owed it to bank?) No, it didn’t change the fact. No. (Concerns about growing debt, and if disclosed?) Yes. (Was it?) No. (Why concenred?) Because it was misleading info on annual report to clients. (Plus loans not mentioned, did annual rpt say anything about what RAS was doing with bank’s money?) Yes, said he was reinvesting it. Said no commercial loans. (Did this cause you to doubt the financial number on assets from the bank?) Yes, it did.

(Exhibit - annual report, SIBL 2006. pg 38 - financial assets and fair value. What was total assets?) $4.9B about $5B (Exhibit - year end 2006 know how much came form bank?) $1.3B about 25% (Why cause you to doubt these numbers, saying bank had $5B in assets?) Because that money was not invested. That money was used to fund the affiliated companies, not part of portfolio any more. (Broker statements? Never shown?) Yes. (You said $1.3B wasn’t invested. What was it going for?) That money was to fund the operating expenses of day to day operations for most part.

(Ever see that bank was getting an ownership interest in those companies?) No. (pg 31 - same annual report - recall discussion about liquidity risk?) I read it. (Next pg - does this break down inestment portfolio bank supposedly had. Fair value $4B?) Yes. (Does it break into how liquid that $5B was? Soon to be liquidated?) $4B or about 80%. (Make any sense to put in operating expenses?) No, not liquid. (Was money still there?) No, spent by those companies.

(Pg 34 - Shows what?) Net investment income. (How much made in 2006? Says $480M total?) Yes. (What you know, did you doubt accuracy?) Yes. (Judge - where numbers came form?) From calculation of revenue calculations. (See broker statements to back that up?) No (Anyone in Houston see them?) No, somebody else sent those numbers. (Why... with what you know... cause to doubt number?) Because if annual report was taken into consideration all $4B portfolio, and all of it wasn’t invested because it was used to fund affiliated companis, there’s miscalculation on revenue and misstatement of revenue income. (Judge - if correct, what would it be?) I don’t have that, less than that. (Wht was bank claiming on return?) Alwasy over 10-11% Typically 12%. (Based on all assets?) Correct. (But you knew money wasn’t being managed. Spent on Cricket, payroll and jets?) Yes.

(Explain to jury why 12% return didn’t make sense to you?) If all the portfolio wasnt there to invest and produce that rate of return to generate $480M, you have a lot small portion to invest. To generate $480M, would have to have much higher rate of return to generate it. (Need fancy calucaitons to figure that out?) No. (How figured?) Just a quik calculation to know that if not all of it’s invested, you don’t have money to create that income.

(Did Acct Dept. generate numbers for bank?) Yes. (Thru 2007, positive?) Yes. Concern - because of economiuc times facing, bank was always returning a profitable return, despite difficult economic times. (Judge - what tiems?) Worldwide. (Months when you knew markets were doing poorly but bank showing postive returns?) Yes, 2008. (In 2008, did bank report aloss for month?) Yes, toward end ofyear. (Ever mention this to anyone else?) Yes,to my immediate supervisor, Mark Kuhrt. Mentioned concern about growth in money to shareholder and return on investments.. hope investment return is being made. He said he hoped so too. (What was his tone?) Sounded concerned, too. Very low tone, concerned tone.

(All these numbers you came to doubt, who ws the outside auditor testing and verifyiing each year?) CAS Hewlett. (2007 annual report - Hewlett signed off?) Yes, he did. (You involved ... as part of duties in pauments to Hewlett?) Yes. (Was he auditing other companies?) Yes, other Antiguan companies, other Stanford companies. (Allocated fees by companies?) Yes. (How much did you know he was being paid by bank each month? . Until 2007, know how much SFG paying Hewlett for all audits?) Yeh, it was monthly of $18,500. (Ws that accounted for with all other expesnes?) Yes, it was. (Out of U.S. accounts for normal expenses?) Yes it did. (Went up?) Yes, to $25K per month, required new allocation. (Email - telling Lopez about monthly payments. Attachment? Shows?) Jan-Dec 2007 payments, allocation by month and accumulated amts to Hewlett and into which company allocated. Total - $222K (How much to SIBL?) $66,200

(Costa - Exhibit - email 4/18 - sent to whom?) Accts Payable and supervisor in department. (read it) May 2008, payment to CAS Hewlett increases to $25K. Asks for new allocation. (Increase. What was your impression... only payments you knew to Hewlett?) Yes. (View of payraise?) My opinion ... (what did you think about that?) Did not know nature of incease but it was significiant amt to be paid on a monthly basis. (Exhibit - email to Kuhrt - ?) Sends revised payment to Hewlett, asks for agreement. Kuhrt says OK but wants OK from SIBL bank officials. (next email - more discussion ... about contacting bank officials, Lopez?) Why, not involved in agreements and payments. (next email - Kuhrt response?) Know Hewlett has been direct to Davis and RAS, is this expected in the future? (Wht does that mean?) That Hewlett conversations mainly with Davis and RAS. Reads... discuss with Davis. Kuhrt said he had strong opinion about change in auditor. Conversation to change the auditor .. reviwing the financials. (What way Kuhrt stood?) I don’t know.

(Next exhibit - did $25K payment go into effect?) Yes. New allocations. (Exhibit - new allocation?) Yes it is. ($25K would be wha per year?) $300K. $96K was going to audit of the bank. (Your view?) It’s a pretty high amount. (Exhibit - new allocation?) Yes. (Exhibit - what is this?) Cash report, Treasury report that showed wire transfer payments. (Bottom - shows 11/12/2008?) $25K to CAS Hewlett 11/12/2008. New allocation went into effect. Aware of payments. (Made from operating acct for SFG?) Yes. ( Which?) Trustmark National Bank.

(Hewlett expenses thru Trustmark, eve told Hewlett paid millions from Swiss Bank Acct?) NO, I wasn’t. (Ever told about acct at Societe Generale in Switzerland?) Yes, I heard about it. (Not about Hewlett?) Right. (Existence of account?) Revision of insurance for some bank deposits. Was listed on premium listed under Stanford Financial Group Ltd, accnt not showing in our financials. (Who showed it ot you?) A risk manager. (Why giving it to you?) To allocate costs to different entities, of insurance. (Listed Soc. Gen? Never seen before?) Correct. Inquired about it. (After inquiry, did Davis say anything?) Yes, he did. (What?) That it was Mr. Stanford’s account. (Did you track it?) I couldn’t, wasn’t given any info or access to make entries to financials.

(Exhibit - ....) (Judge notes his jury badges when he served on three juries. On wall by jury box.)

12:50 - (Costa - show you docs ... bank Soc Gen, nickname?) No. (Exhibit - SC private banking?) Yes. (Says held by SFG?) Yes. Says SIBL c/o SFG with Lausanne, Switzerland address. Never heard of it. Dated 8/15/08. (Shows payment to Barclays Bank in favor of CAS Hewlett, amount?) 20K pounds, usually more than U.S. dollars. (At work, eve seen document like this?) No haven’t. (Ever told he was being paid in Swiss acct., told to put on books about that?) No. (Pg 123 - email with bank records Swiss bank... from Davis May 19, 2008, RAS copied... what does Davis say?) reads... as I informed ... want to change monthly amt to Hewlett from 108.731 acct ... change it from 15K Sterling to 20K Sterling.. effective June 2008. (Judge - Sterling is British Pound?) That is correct.

(Email from Davis to Stanford about amount change?) ... (Judge asks about exchange rate?) (Costa - we’ll have a witness that’s done exchange) (Judge, so 20K was like $30K) Amadio - Hewlett getting more from Swiss than Texas account. (Same time U.S> payments increased?) Yes. (Exhibit - doc, Swiss Bank statement from SC, SFG account - Nov. 2, 2005, payment to Hewlett $125,000) (Ever told about this?) No. (One last one - same account dated Feb. 13, 2006, Pay to Hewlett?) $100,000 U.S. Never saw these satements. (Showed them first time to you in december? Reaction?) object

(Any legitimate reason why Hewlett would be paid from Swiss Acct. that your accounting office wasn’t aware of?) OBJECTION - (Do you know of any reason?) OVERRULED (JUDGE -DO YOU KNOW?) I don’t know any legitimate reasons why these additional payments were paid.

12:59 - lunch RECESS / RESUME 2:15