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A signed affidavit from a key player in the Terry Stewart case saying that Stewart was not a part of a "ponsa scheme" has surfaced, but, according to a court appointed lawyer for Stewart, will not be of any use in Stewart's sentencing trial.

Stewart, who has maintained his innocence of the plan that cost investors millions, was convicted in November of 2001 in a case involving Banyon International. The company was run by Phillip Mark Vaughan who said the company specialized in investing for trusts. The government said that the business was nothing more than a "ponsa" scheme.

Now, in a signed statement that was witnessed inside the Burke-Catawba District Confinement Facility, Vaughan has said that "Terry Stewart has never worked for Banyan or me nor did Stewart ever receive any type of pay from me or Banyan."

The statement of fact comes a little too late for Stewart who is now facing the possibility of never seeing prison from the outside again.

In a Monday, March 24 sentencing trial in Judge Lacy Thornburg's courtroom in Asheville federal prosecutors appeared to be ready to put Stewart away for life. Stewart, having several motions denied, asked the judge to postpone his trial. Having been his own lawyer, Stewart later was appointed a lawyer by the court.

Asheville Attorney Jack Stewart (no relation to Terry) was appointed, but says that the affidavit will have no bearing on how he conducts the case.

Stewart, a former Marine, went to court without a lawyer, because he and his wife, Jeni, said they could not find a lawyer that did not want to plea-bargain.

Vaughan goes on to state in the affidavit that, "I did not meet Stewart until the fall of 1996." This is a key piece of evidence, since the government said during the trial that they had met in April, 1995.

Vaughan adds that he was "coerced and under extreme stress forced to sign a plea deal."

During the trial, Vaughan refused to testify saying he would take the Fifth Amendment if forced to testify.

 

Stewart related articles: Stewart Case Index of Tribune Articles