R. Allen Stanford’s trial on allegations that he led a $7 billion fraud scheme will begin in January 2011 in Houston federal court, US District Judge David Hittner ruled.

Stanford’s lawyer, Kent Schaffer, had asked Hittner not to begin the trial until the summer of 2011. He said if defense lawyers have to proceed without resources provided by Stanford’s insurance policies, it could take as long as two and a half years to properly prepare for trial.

Hittner convened a hearing over a request by Stanford and his co-defendants for a preliminary injunction forcing Lloyd’s of London to advance them defense costs. Lloyd’s lawyer called Stanford and his three co-defendants to testify at yesterday’s hearing to the truth of facts alleged in the indictment, the regulatory case complaint and the receiver’s forensic report into Stanford’s financial services empire.

Each of the defendants declined to take the stand, through his criminal attorney, on the basis of the constitutional right against self incrimination.