Stanford Update re Receiver’s Claims Process and SEC Suit

    KACHROO LEGAL SERVICES, P.C.

Stanford Update re Receiver’s Claims Process and SEC Suit 

Dear Stanford clients:

This update provides information regarding the claims process recently approved by the Court in Dallas, as well as the status of our class action pending against the SEC.

The Stanford Receiver’s Claims Process

On May 4, 2012, the Court in Dallas approved the Receiver’s proposal for a claims process and, on May 11, 2012, the Receiver published the Claim Form that needs to be completed. The deadline to submit your claim is September 1, 2012. For many of you, we have the necessary information and supporting documentation to complete the Claim Form on your behalf. However, if you have any of the following documents and have not previously sent us copies, please do so immediately:

• Personal checks, cashier’s checks, wire transfer advices, Stanford International Bank, Ltd. account statements and other documents showing that you invested funds or paied funds to Stanford;

• Your Stanford International Bank, Ltd. certificate of deposit, and any written contract or agreement made in connection with your investment in Stanford;

• A chronological accounting of all money you received from any Stanford entity;

• All documents and records reflecting any withdrawals ever made by you or payments received by you from Stanford;

• All agreements, promissory notes, purchase orders, invoices, itemized statements of running accounts, contracts, court judgments, mortgages or security agreements relating to your investment in Stanford; and

• Any other documents evidencing the amount and basis of your claim.

If you have not sent us any supporting documentation and you have no supporting documentation, please contact us immediately. We will need to explain to the Receiver why the documentation is unavailable.

Please note that a Claim Form must be completed even if you previously submitted or will be submitting a claim to the Antiguan liquidators. If you are in the Stanford Further Actions (SFA) program, but have decided to submit your own claim, please send it to us so we can check the claim and have a copy of it for our files.

Also note that the submission of a Proof of Claim to the Dallas receivership will submit you to the jurisdiction of the court for all purposes related to the claim. This means that, to the extent there is a dispute regarding your claim,

you may be required to appear in court or provide sworn testimony regarding your claim. You will also be required to sign your Proof of Claim under penalty of perjury. As soon as we complete your Proof of Claim, we will send you a copy to review, sign and send back to us.

If you have any questions regarding your claim, please contact us. If you want KLS to handle your claim, but you have not yet signed up for the SFA program, please contact us for further information on how to sign up.

Update on Stanford/SEC Case

On February 14, 2012, the United States filed a motion to dismiss our Complaint. As we explained in our last update, the United States is arguing that the government is immune from suit based on a statute that exempts it from liability for certain discretionary actions. In our response brief, we argued that we alleged certain statutory violations by the government and the government has no “discretion” to violate statutes. The motion is now fully briefed and we are waiting on a ruling from the judge. There is no timeline for when the judge will rule on the motion, and it may be several more weeks before we receive a ruling. We believe strongly that the Court should rule in our favor, but we are prepared to immediately appeal should the Court grant the motion to dismiss. We will update you as soon as the Court rules on the motion.

The KLS Stanford Team