WASHINGTON - Texas billionaire R. Allen Stanford, whose sprawling banking empire collapsed this year, has been indicted for what prosecutors say is a $7 billion scheme to defraud investors.

Justice Department officials announced the charges against Stanford, who ran Stanford Financial Group, and six others at a news conference today. Also indicted were executives of the company and a former Antiguan bank regulator.

Dick DeGuerin, Stanford's lawyer in Houston, said in a written statement that Stanford was "confident that a fair jury will find him not guilty of any criminal wrongdoing."

The indictment unsealed today charged Stanford and other executives at his firm "would cause the movement of millions of dollars of fraudulently obtained investors' funds from and among bank accounts."

The firm would give money to some investors "to perpetuate the false appearance that (Stanford's business) was financially sound," according to the indictment.

The Securities and Exchange Commission has filed court papers charging that Stanford and top executives orchestrated a massive fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.

Stanford has been working since February to challenge what his attorney called "the false accusations against him." DeGuerin said that rather than resulting from fraud or a Ponzi scheme, "the present insolvency of the Stanford Companies was caused by the SEC heavy-handed actions, which have destroyed and continue to destroy much of the value" of the companies and their investors.

Stanford, in FBI custody after surrendering Thursday, was to appear in federal court in Richmond, Va. later today for an initial appearance and to deal with detention issues.

The others indicted were Stanford executives Laura Pendergest-Holt, Gilberto Lopez and Mark Kuhrt. A separate indictment unsealed in Florida accused a fourth Stanford worker, Bruce Perraud, of destroying records important to the investigation.

Prosecutors charged Leroy King, the former chief executive officer of Antigua's Financial Services Regulatory Commission, with conspiracy to obstruct an SEC investigation.

Criminal charges were filed against James Davis, chief financial officer for Stanford Financial Group.

A grand jury in Houston has been investigating Stanford Financial Group. The SEC filed civil charges earlier this year accusing Stanford and his top executives of conducting an $8 billion fraud by advising clients to buy certificates of deposit from the Antigua-based Stanford International Bank.

The $7 billion fraud charged in the criminal indictment is the amount the government believes it can prove beyond a reasonable doubt. The $8 billion figure cited in the SEC's civil case is the amount the government believes it can prove by the less stringent civil standard of a preponderance of the evidence.

The SEC's lawsuit charged that the bank advertised its CDs in a brochure touting a conservative investment philosophy.

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