The indictment accused the defendants of fraud, conspiracy, obstructing justice and conspiracy to launder money.

Stanford, a flamboyant 59-year-old financier, already faces civil charges accusing him of orchestrating a "massive" fraud over sales of $8 billion (4.8 billion pounds) in high-interest certificates of deposit issued by the Antigua-based Stanford International Bank.

But the criminal charges are more serious, carrying a maximum prison term for Stanford of 250 years. Also indicted were three Stanford Financial Group executives and an Antigua regulator.

WHAT HAPPENS NEXT?

Stanford surrendered to FBI agents Thursday outside his girlfriend's house in Virginia and made an initial court appearance in Richmond Friday.

A more important court hearing will come later at his arraignment in Houston, when Stanford will formally enter a plea to the charges.

Stanford has repeatedly denied any wrongdoing and has hired a prominent Texas defence lawyer, Dick DeGuerin, to represent him. "He is confident that a fair jury will find him not guilty of any criminal wrongdoing," DeGuerin said.

The judge in Houston could set a tentative trial date, but any trial could be months off, if not longer, with various motions likely to be filed and with prosecutors turning over evidence of the complex financial dealings at the heart of the case.

WHAT'S THE DIFFERENCE BETWEEN CIVIL AND CRIMINAL CASES?

The civil case which had been brought by the U.S. Securities and Exchange Commission was amended Friday to include some of the latest information uncovered by investigators.

The civil case in Dallas could be put on hold while the criminal one goes forward.

The criminal case to some extent tracks the civil one, but requires a higher burden of proof -- a guilty verdict requires evidence beyond a reasonable doubt that the defendant committed the crime.

Besides long prison terms if convicted, the defendants could be required under criminal forfeiture laws to give up their money held in various foreign bank accounts and other assets shown to be linked to fraud.

The Justice Department did not estimate how much money might be forfeited. But in the case of another Stanford Financial Group executive, James Davis, who has been cooperating with investigators, the amount could be up to $1 billion, according to court documents.

WHAT HAPPENED TO THE MONEY?

The Justice Department said the defendants misused and misappropriated most of the $7 billion held in investors' funds and so far less than $2 billion in recoverable assets had been identified.

U.S. government officials declined to predict how much money investors might ultimately recover. They estimated that some 30,000 investors, including thousands of Americans, were defrauded.

Stanford was accused of diverting more than $1.6 billion of the money into undisclosed personal loans.

Greg Campbell of the U.S. Postal Inspection Service, told the news conference, "This case is a typical Ponzi scheme -- robbing Peter to pay Paul."

WHY DIDN'T REGULATORS UNCOVER THE SCHEME EARLIER?

Although the alleged scheme went back some 10 years, U.S. regulators only brought the civil case in February.

Robert Khuzami of the U.S. Securities and Exchange Commission said the scheme had been carefully orchestrated by Stanford, allegedly involving the company's top accountants.

Further, he said Antigua's top banking regulator, Leroy King, accused of taking more than $100,000 in bribes from Stanford, conspired to conceal the fraud from the Securities and Exchange Commission.

WHAT IS HAPPENING TO THE OTHER ACCUSED?

Two of the other four accused, accountants Gilberto Lopez and Mark Kuhrt, had bail set at $100,000 apiece by a Houston judge. A third, former Stanford executive Laura Pendergest-Holt, is now out on bail and has her next court hearing scheduled for July 1.

King is believed to be in Antigua and Justice Department officials said they were working with Antiguan officials on the matter.

The United States could seek his extradition. King is a dual citizen of the United States and Antigua.

(Editing by Vicki Allen and Andrew Quinn)