SAINT JOHN'S, ANTIGUA -- the Honourable Mr Justice Mario Michel of the Eastern Caribbean High Court at Antigua appointed Marcus A. Wide of the BVI and Hugh Dickson of the Cayman Islands the new liquidators of Stanford International Bank Ltd., today.
In November 2009, a number of creditors of Stanford International Bank sought the removal of the original joint-liquidators of the failed bank, Nigel Hamilton-Smith and Peter Wastell, alleging that, they should be removed from office.
"Wide's and Dickson's appointment represents an important step in the recovery of money for the many victims of the alleged R. Allen Stanford multi billion dollar Ponzi scheme," said Alexander Fundora, the Stanford International Bank Ltd. creditor who led the action to appoint new liquidators. Fundora, the founder of a Miami, Fla.-based home health care company, lost $2.5 million in the Stanford scheme. His application to appoint new liquidators was supported by depositors who hold more than $100 million of claims.
"With more than $7 billion in alleged losses suffered by approximately 27,000 depositors worldwide, a robust liquidation of the bank is vital," said Wide. "Hugh Dickson and I look forward to serving the creditors of the Stanford estate."
Dickson said he looks forward to working with the former joint liquidators of the bank to ensure, for the sake of the creditors, that control over the estate is transferred in an orderly fashion.
Wide and Dickson have more than 60 years combined experience in insolvency, and now specialise in offshore entities and complex and contentious cases. Wide in particular has liquidated over 30 failed banks in the Caribbean.
For at least a decade, R. Allen Stanford, James M. Davis, and Laura Pendergest-Holt, through companies they controlled, including Stanford International Bank Ltd., executed a massive Ponzi scheme, according to court filings by U.S. prosecutors. In carrying out the scheme, it is alleged that Stanford, Davis and Pendergest-Holt misapplied billions of dollars of depositor funds.
Soon after the United States Securities and Exchange Commission ("SEC") sued Stanford for fraud, in February 2009, the High Court of Antigua appointed Hamilton Smith and Wastell of Vantis Business Recovery Services of the UK as receiver-managers over the bank. Their initial brief was to take charge of the bank's affairs and to preserve assets. In Dallas, Texas, a U.S. District Court Judge appointed, at the request of the SEC, Ralph Janvey as Receiver over the bank's assets as well. This has led to an expensive fight for control over the worldwide assets of the bank between SEC Receiver Janvey and the former joint liquidators appointed by the Antiguan Court.
Mr. Fundora launched his application for the former joint liquidators' removal shortly after Judge Claude Auclair of the Superior Court of Quebec ruled against the Outgoing Officeholders in a highly critical opinion in September 2009. Since then, Vantis plc, a U.K.-based accounting, tax and recovery firm, has been placed into insolvent administration and the former joint liquidators joined FRP Advisory LLP.
Despite repeated calls for urgency in appointing the new liquidators, the estate has been in limbo since the June 8, 2010 decision.
Mr. Fundora has been represented by Martin Kenney of Martin Kenney & Co. Solicitors, of the British Virgin Islands and Miami based attorney Edward H. Davis, Jr. of Astigarraga Davis. Antiguan lawyers Nicolette Doherty and Craig Christopher serve as local counsel in Antigua.
It should be fascinating to see how Antigua deals with receivers who are not under their control, and who presumably will demand that Antigua transfer back all assets stolen from the Stanford investors to the rightful owners.
ReplyDelete