Sunday 17 April 2011

Grizzlies Sued Over Stanford Funds; More Money Sought From Memphis Hospitals

The court-appointed receiver for disgraced financier R. Allen Stanford’s empire, along with an official group of Stanford investors, has added another Memphis name to the group of entities they’re suing.

They also want more money from two Memphis entities they’ve already sued.

On Thursday, Stanford receiver Ralph Janvey filed a joint suit against the owners of pro basketball teams the Houston Rockets and the Memphis Grizzlies.

That suit seeks the recovery of almost $1.6 million in allegedly sham CD proceeds from Stanford.

The suit says that investigation is continuing and that the final amount might be higher. It does not break the amount down between the two NBA teams.

Meanwhile, the Stanford Investors Committee filed suit in February against St. Jude Children’s Research Hospital; its fundraising arm, ALSAC; and the Le Bonheur Children’s Hospital Foundation.

That suit sought to recover at least $7.3 million in Stanford funds.

The same day the Grizzlies were sued, an amended complaint was filed against the hospital entities asking for more money.

The “official Stanford Investors Committee” in the amended complaint says it has now identified almost $12 million in Stanford funds paid to the ALSAC-related defendants and at least $1.5 million to Le Bonheur.

All the sides in the ALSAC-related case have met for at least one mediation session. A court form shows the April 7 session was unsuccessful.

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