Sept. 28 (Bloomberg) -- R. Allen Stanford, awaiting trial on charges that he led a $7 billion investor fraud, was granted a transfer from a private Texas jail to a federal facility closer to his lawyers in downtown Houston.

The financier, who is being detained without bail, is recovering from injuries suffered in a fight with another inmate on Sept. 24. He suffered a concussion, two black eyes and a broken nose, according to his lawyer.

U.S. District Judge David Hittner signed an order today transferring Stanford to the federal detention center in downtown Houston without mentioning the jail fight. The altercation occurred at the Joe Corley detention center in Conroe, north of Houston, where Stanford, 59, has been held since he was indicted in June for bilking investors through a scheme involving Antiguan bank certificates.

“The court recognizes the extraordinary nature and complexity of this case, the extent and gravity of the charges levied against Stanford, the hundreds of thousands of records involved, and the enormous amount of time no doubt necessary to review those documents and adequately prepare a defense,” Hittner said in an order posted to the court’s Web site.

The downtown Houston prison is located a few blocks from the offices of Kent Schaffer and the office of the federal public defender, whom Hittner appointed to represent Stanford on Sept. 16. The attorneys asked Hittner to move Stanford to the Houston facility in a request sealed from public view that was submitted three days before Stanford got into the jail fight.

4 Million Documents

Hittner denied a previous request from Stanford’s prior attorney, Dick DeGuerin, to move the financier to the downtown prison to assist his lawyers with trial preparation. Schaffer said there are more than 4 million documents in the government’s Stanford-related database, most of which require computer access.

“Because of the unique circumstances present in this case, it is appropriate to order Stanford” be transferred to the downtown prison “no later than Thursday, October 1,” Hittner said in the order.

Stanford has denied any wrongdoing in connection with 21 felony charges that he paid early investors “improbable if not impossible” returns by taking funds from later buyers of certificates of deposit at his Antigua-based Stanford International Bank Ltd. He faces similar civil fraud allegations by the U.S. Securities and Exchange Commission.

To contact the reporter on this story: Laurel Brubaker Calkins in Houston at laurel@calkins.us.com.

Last Updated: September 28, 2009 16:08 EDT