HOUSTON (Bloomberg) — Allen Stanford, the financier accused of leading a $7 billion fraud scheme, has been deprived of his constitutional rights by being held without bail before trial, lawyers including Alan Dershowitz said in a court filing.

Stanford has been jailed since June when he was indicted by a grand jury in Houston. US District Judge David Hittner, who is presiding over the case, has denied requests to ease his confinement as the defence readies for a January trial.

Stanford's attorneys say jail has reduced their client to a "wreck of a man" who is severely depressed, forgets conversations, can no longer see out of one eye and believes he is "losing his mind".

"This court has not previously been asked to consider the issues as a constitutional matter involving detention of a predictable minimum of more than two years from arrest through trial," Dershowitz and lead lawyer Robert Bennett said yesterday in the filing.

Stanford, 60, faces a 21-count indictment. Prosecutors allege he and his associates ran a "massive" fraud scheme involving the sale of certificates of deposit through Antigua- based Stanford International Bank Ltd.

He has denied all allegations of wrongdoing.

Dershowitz, a Harvard University law professor who helped defend former professional football player OJ Simpson and socialite Claus von Bulow, joined the Stanford defence team as a consultant last month. He said then he would work only on the issue of obtaining bail for the Texas financier.

"He's presumed innocent, yet he is being treated worse than a convicted defendant," Dershowitz said then.

Hittner has twice denied Stanford bail. Both of those decisions were upheld on appeal. In yesterday's filing, Dershowitz and Bennett said the presumption of innocence embedded in the US legal system "has been turned on its head".

They are asking Hittner to free Stanford so he can assist in his defence. Among other restrictions, Stanford would wear an electronic monitoring bracelet on his ankle while confined to the home of his fiancée's sister, except when meeting with his counsel, they said.

Otherwise, the case should be thrown out because Stanford is being deprived of his constitutional right to assist in the preparation of his defence, the lawyers said.

Laura Sweeney, a Justice Department spokeswoman, didn't immediately return voice-mail or e-mail messages seeking comment.