Allen Stanford, whose whereabouts had been unknown since being charged this week by the SEC in connection with an alleged $8bn fraud, was located in Virginia on Thursday by federal agents.

There were reports that he had tried and failed to charter a jet from Houston to Antigua yesterday.

The agents served Stanford with court orders relating to the SEC civil filing against the Texas billionaireâ??s investment firm, Stanford Financial Group, the Federal Bureau of Investigation said.

It also emerged on Thursday that federal investigators in the US have widened their probe into the alleged fraud. The FBI has launched a criminal inquiry into Stanfordâ??s activities, in conjunction with the US attorneyâ??s office in Houston.