Gaytri sent a letter out to Janvey demanding that he make a payout and today this has happened!! This is a direct result of our Motion to Intervene, well done Gaytri!!
You can find Gaytri's letter in the previous post on this page.
Source: Bloomberg
Allen Stanford Receivership Proposes Payment Plan for Defrauded Investors
By Andrew Harris and Laurel Brubaker Calkins - Nov 17, 2011
The court-appointed receiver for R. Allen Stanford asked a U.S. judge to approve a proposed plan to register, and ultimately pay, claims by investors allegedly defrauded in a $7 billion scheme.
Lawyers for receiver Ralph Janvey didn’t say in yesterday’s filing how much money is available to distribute to claimants. On Nov. 11, the receivership submitted to U.S. District Judge David Godbey in Dallas a report stating it had $114.5 million in cash on hand and $96.6 million in assets as of Oct. 31.
“The receiver has not decided which methodology is best suited for the circumstances of this case,” Janvey’s lawyers told the court. “For investor claimants, the amount of the investor’s net investment in the Ponzi scheme will be one of the most significant factors.”
Janvey was appointed by the court in February 2009 when the U.S. Securities and Exchange Commission sued Stanford, claiming he deceived those who bought certificates of deposit from his Antigua-based Stanford International Bank Ltd.
Janvey said in a court filing that he may be able to increase the amount available for distribution by an additional $955.3 million if he succeeds in the so-called clawback litigation and wins access to Stanford’s foreign bank accounts. Janvey has sued Stanford investors and vendors for $609.7 million. He’s also fighting the Antiguan receiver for control of $335 million in Stanford’s Swiss and British bank accounts.
Stanford, 61, was indicted for fraud by a U.S. grand jury in Houston in June 2009. The former principal of Houston-based Stanford Group Co. has been in federal custody since then and has pleaded not guilty.
The receiver asked Godbey to approve an order setting a bar date and compelling investors to provide proof of their claims and divulge whether they’d also sought payment from a receivership appointed by the Antiguan government.
Separate Response
Janvey’s lawyers said the proposal was assembled after consultation with an investors’ committee and a court-appointed investor advocate, Dallas attorney John Little.
They didn’t fully agree with his proposal, attorneys for the receivership said, and are expected to file separate responses with the court.
“Ultimate payment on any claims will take into account payments, if any, made pursuant to distribution plans, which may be implemented by relevant constituencies” including the U.S. Justice Department, the federal Securities Investor Protection Corp. and foreign courts and authorities, according to the Janvey filing.
The Janvey receivership through Oct. 31 consumed $52.1 million in professional fees and expenses, and an additional $50.3 million in other expenses, according to the Nov. 11 report.
‘About Time’
“It’s about time,” Stephen Malouf, a Dallas attorney who represents more than 480 Stanford investors, said in a phone interview. “For a lot of the investors, this was their life savings. There could’ve been a pro-rata distribution a year or 18 months ago.”
“If the receiver has a system to register claims, the investors have their proof and there’s money in the till, then you should make some kind of distribution,” the investors’ lawyer said.
The civil case is Securities and Exchange Commission v. Stanford International Bank Ltd., 09cv298, U.S. District Court, Northern District of Texas (Dallas). The criminal case is U.S. v. Stanford, 09cr342, U.S. District Court, Southern District of Texas (Houston).
This seems to be a strong indication that the US is not going to offer SiPC protection for Antigun CDs. At this point, things should be handled by the Antiguan receiver nd courts
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