Canadian court recognizes Stanford's U.S. receiver

A court in Canada ruled that the U.S. receiver in charge of alleged swindler Allen Stanford's estate should have control of the firm's Canadian assets, a blow to the Antiguan liquidators who sought them.

Nigel Hamilton-Smith, one of the Antiguan liquidators, said in a statement on Monday that they will appeal the decision that was handed down by the Montreal Superior Court verbally on Friday.

Ralph Janvey, the U.S. receiver in the case, and the Antiguan liquidators have been battling over control of the assets of Stanford International Bank Ltd, the offshore bank that prosecutors say is at the center an alleged $7 billion fraud.

"We are gratified that the Quebec court has recognized the legitimacy of the U.S. court's order and my authority under the order," Janvey said in a statement. "We look forward to proceeding to assure that funds held by Stanford International Bank Ltd and other entities in the Stanford Financial Group are made available for a fair and equitable distribution to the victims."

Allen Stanford and others faces civil and criminal fraud charges related to an alleged Ponzi scheme. Prosecutors say Stanford used proceeds from the sale of fraudulent certificates of deposit issued by his Caribbean bank to fund his luxurious lifestyle.