Allen Stanford, the Texas financier who stands accused of a $7 billion Ponzi scheme, drew on a Swiss bank account to support expenses such as yacht maintenance and paying bribes, Reuters reports.

Stanford is accused of swindling investors by selling them fraudulent certificates of deposit through his Caribbean-based bank, Stanford International Bank.

"The monies flowed from Stanford International Bank CDs to this slush account at SocGen," James Davis, former chief financial officer of the operation, reportedly told jurors.

Davis is pleading guilty to the alleged Ponzi scheme, and, as he is the only person charged to do so, forms a key part of the government's case, according to the report.

As part of the scheme, Stanford allegedly misled investors to believe the proceeds from the CDs were invested in relatively safe and liquid investments, such as blue-chip companies, when in fact they went into illiquid assets such as Caribbean real estate and start-up companies, according to the news service.

Furthermore, some funds from the Swiss account were allegedly transferred to an account in Antigua to bribe Leroy King, a regulator there, the report says.

Davis also reportedly testified that while the bank always logged an annual profit on paper, it never actually made a profit.

“My instructions were clear from the beginning: We report a profit," Davis is quoted as saying.