HOUSTON (AP) - Texas financier R Allen Stanford, jailed on charges of bilking investors out of $7 billion, was hospitalised, yesterday, with an irregular heartbeat and high pulse, just hours before his ex-finance chief became the first person to plead guilty in the case.

Stanford was set to appear in a Houston federal courtroom for a hearing on whether he can get a new attorney. His current lawyer, Dick DeGuerin, has asked for permission to quit the case because he does not have assurances he will be paid. Mr. DeGuerin said he did not know what Stanford's medical condition was.

In the same courtroom, Stanford's former chief financial officer, James Davis, pleaded guilty yesterday to three counts: conspiracy to commit mail, wire and securities fraud; mail fraud; and conspiracy to obstruct a Securities and Exchange Commission investigation.

"I did wrong. I'm sorry. I apologise. I take responsibility for my actions," Mr. Davis, 60, said as he left the federal courthouse after his hearing.

Mr. Davis' attorney David Finn said his client has been co-operating with prosecutors for the last six months and the guilty plea is part of a deal with the Justice Department in exchange for a possible reduced sentence.

Mr. Davis faces up to 30 years in prison when he is sentenced. While a sentencing date of November 20 was set, Mr. Finn said he believes that will be delayed.

As part of his plea agreement, Mr. Davis was also ordered to forfeit $1 billion in proceeds he made from his illegal actions.

Mr. Finn said authorities have seized all his client's assets and Mr. Davis, who had made between $5 million and $6 million in the last decade, is broke and now doing manual labour on a relative's farm in Michigan, making $10 an hour. Mr. Davis is originally from Mississippi.

Stanford, Mr. Davis and other executives of the now defunct Houston-based Stanford Financial Group are accused of orchestrating a massive Ponzi scheme by advising clients to invest more than $7 billion in certificates of deposit from the Stanford International Bank in the Caribbean island of Antigua, creating false records to inflate the bank's assets and then misusing the money, in part to pay for Stanford's lavish lifestyle.

Mr. DeGuerin said Stanford was taken from the privately run prison where he is being held outside Houston at about 5.30 a.m. yesterday to the Conroe Regional Medical Center.

US District Judge David Hittner said Stanford had an irregular heartbeat and an "extremely" high pulse.

A spokeswoman for the medical centre declined to release any information yesterday to The Associated Press.

Mr. DeGuerin said Stanford has high blood pressure and told reporters after the hearing he does not think his client has received good medical care since being jailed.

"I wouldn't be surprised if stress exacerbated his condition," said Mr. DeGuerin, who added he was not planning on visiting Stanford in the hospital.

Mr. Finn said he did not think it was a coincidence Stanford fell ill on the day Mr. Davis pleaded guilty in the case.

Mr. DeGuerin suggested the money bilked from investors went to Mr. Davis, but Mr. Finn said his client was used and manipulated by Stanford.

Mr. Hittner postponed a hearing scheduled for yesterday in which he would hear arguments about Stanford's legal representation.

Last month, Stanford's spokesman said the jailed financier had hired Washington DC-based attorney Robert Luskin, who also represents former White House political adviser Karl Rove. But, Mr. Luskin also wants assurances he will get paid, and Mr. Hittner will not release Mr. DeGuerin until an attorney takes the case unconditionally.

Stanford, along with three former company executives, has pleaded not guilty to various charges, including wire and mail fraud, in a 21-count indictment issued on June 18. Stanford has been jailed without bond since then, considered a flight risk by Mr. Hittner.