R. Allen Stanford, the Texas financier accused of running a $7 billion investor fraud, will be represented by the federal public defender's office in his criminal case because he has no money to hire an attorney.
Kent Schaffer, a private-practice lawyer in Houston who attended Tuesday's hearing at that city's federal courthouse, said afterward he will work with the public defender's office on Stanford's case.
Stanford, who denies all wrongdoing, was brought to court in shackles from jail, where he is being held until trial on charges he bilked investors in a "massive" Ponzi scheme involving certificates of deposit at Antigua-based Stanford International Bank. The head of the Stanford Financial Group was ranked the 205th-richest American in 2008 by Forbes magazine, which estimated his net worth at $2 billion.
Regulators and investors have fought attempts to unlock legal defense funds from Stanford's seized assets, which were frozen by court order on Feb. 17 when the U.S. Securities and Exchange Commission accused him of investor fraud. Stanford is also being denied access to his company's liability insurance policy, after the court-appointed receiver claimed those funds may be needed to defend Stanford's companies against lawsuits.
Stanford's previous attorney, Dick DeGuerin, has estimated it will cost more than $20 million and take a year to prepare for a trial that could last six months. Stanford faces spending the rest of his life in prison if convicted of the most serious of 21 felony counts against him.
Showing posts with label Bank of Houston. Show all posts
Showing posts with label Bank of Houston. Show all posts
Thursday, 17 September 2009
Saturday, 5 September 2009
Toronto-Dominion Sued Over Stanford Investments
Toronto-Dominion Bank, Canada’s second-biggest bank, was accused in a lawsuit of negligence and knowing assistance for allegedly helping R. Allen Stanford, who is accused of swindling investors of more than $7 billion, the National Post reported.
The lawsuit, filed in Ontario Superior Court Aug. 26 by Bennett Jones LLP, seeks C$17 million ($15.5 million) for five Canadian investors who say Toronto-Dominion’s role as a correspondent bank increased the credibility of Stanford’s investments, the Post said. The investors claim they lost money in certificates of deposits based on recommendations made by a financial adviser who worked for the Stanford Group of companies, the Post said.
Toronto-Dominion conducted its business in an “appropriate and lawful manner,” Susan Webb, a spokeswoman at the bank, told the newspaper.
Stanford, who faces 21 criminal charges, denies all wrongdoing tied to what the government says was a scheme to pay early investors “improbable if not impossible” returns with funds taken from later investors in Antiguan certificates of deposit. He is being held without bail until he can go on trial.
The lawsuit, filed in Ontario Superior Court Aug. 26 by Bennett Jones LLP, seeks C$17 million ($15.5 million) for five Canadian investors who say Toronto-Dominion’s role as a correspondent bank increased the credibility of Stanford’s investments, the Post said. The investors claim they lost money in certificates of deposits based on recommendations made by a financial adviser who worked for the Stanford Group of companies, the Post said.
Toronto-Dominion conducted its business in an “appropriate and lawful manner,” Susan Webb, a spokeswoman at the bank, told the newspaper.
Stanford, who faces 21 criminal charges, denies all wrongdoing tied to what the government says was a scheme to pay early investors “improbable if not impossible” returns with funds taken from later investors in Antiguan certificates of deposit. He is being held without bail until he can go on trial.
Thursday, 27 August 2009
Stanford’s Private-Equity Stakes to Be Sold Over His Objection
Stanford’s investments in an Israeli development fund and a luxury Houston hotel can be sold immediately, over objections from the financier that he hasn’t been convicted of any wrongdoing, a federal judge ruled.
Court-appointed receiver Ralph Janvey won approval to sell several pieces of Stanford’s private-equity portfolio on an emergency basis to avoid meeting capital calls or diluting the investments, according to an order posted yesterday by U.S. District Judge David Godbey in Dallas.
The transactions “are in the best interest of the receivership estate,” the judge wrote.
Stanford is fighting criminal and civil allegations that he defrauded investors of more than $7 billion through the sale of bogus certificates of deposit at Antigua-based Stanford International Bank Ltd. He had urged Godbey to block the sales.
The Texas financier, who is in jail awaiting trial, complained Janvey is selling his investments at steeply discounted prices and increasing investor losses by failing to let the stakes mature.
Janvey asked Godbey’s permission to sell Stanford’s share of the Israeli fund and the Houston hotel after receiving offers from other limited partners already participating in each project.
Court-appointed receiver Ralph Janvey won approval to sell several pieces of Stanford’s private-equity portfolio on an emergency basis to avoid meeting capital calls or diluting the investments, according to an order posted yesterday by U.S. District Judge David Godbey in Dallas.
The transactions “are in the best interest of the receivership estate,” the judge wrote.
Stanford is fighting criminal and civil allegations that he defrauded investors of more than $7 billion through the sale of bogus certificates of deposit at Antigua-based Stanford International Bank Ltd. He had urged Godbey to block the sales.
The Texas financier, who is in jail awaiting trial, complained Janvey is selling his investments at steeply discounted prices and increasing investor losses by failing to let the stakes mature.
Janvey asked Godbey’s permission to sell Stanford’s share of the Israeli fund and the Houston hotel after receiving offers from other limited partners already participating in each project.
Tuesday, 25 August 2009
Stanford Victims file Class Action Suit against Trustmark National Bank, HSBC Bank PLC, The Toronto-Dominion Bank, SG Private Banking (SUISSE) S.A.
STANFORD VICTIMS FILE CLASS ACTION SUIT AGAINST TRUSTMARK NATIONAL BANK, HSBC BANK PLC, THE TORONTO-DOMINION BANK, SG PRIVATE BANKING (SUISSE) S.A., AND BANK OF HOUSTON
HOUSTON, TX - Victims of Stanford International Bank, Ltd., part of the Stanford Financial Group, filed a class action lawsuit in Texas state court in Houston on August 23, alleging that Trustmark National Bank, HSBC Bank PLC, The Toronto-Dominion Bank, SG Private Banking (Suisse) S.A., and Bank of Houston "provided essential assistance to Stanford in one of the largest financial crimes in history."
The class action petition alleges that the banks conspired with Stanford to commit fraud. The plaintiffs seek more than $7 billion in damages. The lawsuit also seeks to recover all of the fees paid to the banks by Stanford under the Uniform Fraudulent Transfers Act.
The plaintiffs are represented by the New York law firm of Morgenstern & Blue, LLC, which last month filed a class action complaint against the Commonwealth of Antigua and Barbuda alleging that the island nation conspired with Stanford and protected Stanford's banking activities from scrutiny by the Securities and Exchange Commission and other regulators.
The case is Rotstain v. Trustmark National Bank, Harris County (Houston), cause number 2009-53845.
Contact: Peter D. Morgenstern
pmorgenstern@mfbnyc.com
(212) 750-6776
HOUSTON, TX - Victims of Stanford International Bank, Ltd., part of the Stanford Financial Group, filed a class action lawsuit in Texas state court in Houston on August 23, alleging that Trustmark National Bank, HSBC Bank PLC, The Toronto-Dominion Bank, SG Private Banking (Suisse) S.A., and Bank of Houston "provided essential assistance to Stanford in one of the largest financial crimes in history."
The class action petition alleges that the banks conspired with Stanford to commit fraud. The plaintiffs seek more than $7 billion in damages. The lawsuit also seeks to recover all of the fees paid to the banks by Stanford under the Uniform Fraudulent Transfers Act.
The plaintiffs are represented by the New York law firm of Morgenstern & Blue, LLC, which last month filed a class action complaint against the Commonwealth of Antigua and Barbuda alleging that the island nation conspired with Stanford and protected Stanford's banking activities from scrutiny by the Securities and Exchange Commission and other regulators.
The case is Rotstain v. Trustmark National Bank, Harris County (Houston), cause number 2009-53845.
Contact: Peter D. Morgenstern
pmorgenstern@mfbnyc.com
(212) 750-6776