Grant Thornton Press Release Regarding Sale of land at Airport

SALE OF LAND PARCELS COULD BE WIN-WIN SITUATION FOR GOVERNMENT AND STANFORD CREDITORS

Stanford Development Company’s sale of land could benefit creditors of Allen Stanford’s alleged Ponzi scheme

ANTIGUA-January XX, 2012-- The Government of Antigua would like to acquire two parcels of land which adjoin the airport as part of its redevelopment program.  These parcels are part of the property of Stanford Development Company (SDC).  Currently, the Joint Liquidators of Stanford International Bank (SIB) placed a freeze over all SDC lands. 

Prior to the Stanford International Bank and its creditors benefitting from the value of the frozen assets, the Joint Liquidators recognize that legitimate creditors of SDC will have to be paid.

Therefore, provided that SDC gets fair value for the land and that value reduces the creditor claims, either through a cash payment or set-off, there is no harm to SIB and its creditors in this sale taking place.  Joint Liquidator, Marcus Wide of Grant Thornton said, “Under the court’s freeze order, our consent, or approval from the court will be required for any such sale.”  SDC is obliged to advise the Joint Liquidators when a sale is agreed, and provide evidence that the price is at fair value.  If the Joint Liquidators disagree, they can object to the transaction which will then go before the Court for adjudication. 

FOR MORE INFORMATION CONTACT:

Elizabeth C. Ortega

ECO Strategic Communications

305.213.8798

eco@ecostrats.com

www.ecostrats.com

Or

Kristen P. Dettbarn

ECO Strategic Communication

305-546-6386

kpd@ecostrats.com

www.ecostrats.com

Grant Thorntons Response to Baldwin Spencer Re Land Purchase at airport

"The Joint Liquidators are aware that the Government of Antigua would like to buy two small parcels of land for the airport redevelopment from SDC.

Under the Court's freeze order our consent or approval from the Court will be required for any such sale. As yet we have not been asked to provide our consent to any transactions.

Proceeds from any sale may only be used for the ordinary day to day operations of SDC or to payout its creditors."

Antigua Government moves to buy back airport lands

By OBSERVER News

Prime Minister Baldwin Spencer has revealed that the government is trying to buy back two parcels of land at the VC Bird International Airport from a development company owned by jailed Texan financier, R Allen Stanford.

In his New Year’s address, the nation’s leader said the land is needed for the construction of the new airport terminal, which had its groundbreaking ceremony back in early November last year.

Spencer said the government aims to have construction for the two-year project begin this month. However, he said the project “necessitates the utilisation of two parcels of land currently owned by Stanford Development Company Limited: the small parcel (.64 of an acre) to the east which was used by the taxis as a parking area, and the former government car park parcel of 5.42 acres,” Spencer said.

Stanford had in February 2003 purchased from the government 25.59 acres around the airport compound, including these parcels at a concessionary price of EC $1.10 per square foot, according to Spencer.

The prime minister said he hopes to have an agreement reached that would allow the government to take control of the land immediately.

“I have instructed the Airport Authority to hold discussions with the company officials early next week towards arriving at a reasonable sale price of the two parcels of land back to government and on terms that will allow for immediate occupation,” Spencer said.

There is no indication on whether the company plans to comply with the request but Spencer said he is anticipating full co-operation and a quick resolution.

“Given the national interest at stake and the imminent commencement of construction works, I expect that the necessary co-operation and good faith on both sides will allow a settlement of this matter in the shortest possible time,” Spencer said.

Cabinet Backs New Guiana Island Project

The Cabinet of Antigua & Barbuda has endorsed a development proposal for Guiana Island and Crump Peninsular, in spite of its earlier position to declare the lands part of a protective management plan for a marine sanctuary.

The land, situated in St Peter’s parish and owned by R Allen Stanford’s Stanford International Bank (SIB) – have been a contentious topic stretching between past and present administrations and stirring environmental activists.

It is now in the hands of joint liquidators as Stanford awaits his trial in the United States following an investigation for fraud by the US Securities Exchange Commission.

These lands were, however, never among those parcels compulsory acquired by the government and now handed over. Attorney General Justin Simon announced in Parliament on May 27 that some of the lands were released to Vantis Business Recovery Services to generate money to repay investors who were allegedly defrauded.

According to information on www.iprantigua.com, Gilbert Boustany, acting on behalf of liquidator Nigel Hamilton-Smith, is seeking interested investors for acquisition of the land and the Island Paradise Resort Development project.

So far, the joint liquidators Hamilton-Smith and Peter Wastell of Vantis Business Recovery Services have “engaged OBMI and Ernst & Young to create a master plan vision and a high level feasibility study for the future development of the site.”

In a letter dated February 20, 2010 to Boustany, the government gave its seal of approval to the Island Paradise Resort (IPR) proposal.

“This is to advise that the Government of Antigua and Barbuda is in strong support of the Island Paradise Resort Development Project and the Crump Peninsular and Guiana Island,” the letter said. “At a meeting of the Cabinet on Thursday 18th, February the project was presented by Antigua and Barbuda Investment Authority and received favourable consideration from the Cabinet. I look forward to continuing working closely with your group to see the full completion of this project." It was signed by Minister of Tourism, Civil Aviation and Culture John Maginley.

The AG confirmed to Caribarena.com that Cabinet met to discuss the proposal and later submitted an agreement in principle.

“The creators were seeking to attract investors and basically indicating to investors the kind of development, and they wanted the government’s OK in principle to that kind of development on Guiana Island… there is an agreement in principle with the development proposals,” he said. “There has been no firm proposal in respect of the development. What they wanted was to advertise the place and to see what kind of development would be supported when they present it to would-be investors."

The IPR website said the company intends to create a project that will rank first among destinations in Antigua, and significantly boost tourism. It also promises to preserve the existing natural resources on the site.

Caribarena.com has been informed that the proposal has reached the Development Control Authority (DCA) for consideration. We were further told that DCA had forwarded the document to the Environmental Division for review, and to submit recommendations. However, this has not been confirmed by those bodies.

Simon, however, told Caribarena.com that for a plan to reach DCA, it must be presented by the person or persons who would be leading the actual development.

The overall project, as stated on the IPR website, includes five hotels with 1,060 rooms, in addition to 1,300 residential units, a golf course, a casino and sports marine, and commercial facilities on the 982 acres of Crump Peninsula, 478 acres of Guiana Island, and 52 acres on Crump Island.

In 2007, the United Progressive Party (UPP) administration refused to sell Guiana Island Farms land to Stanford for the construction of a multi-million dollar development.

Nonetheless, Stanford managed to bypass the government, and acquired the land from Asian Village Antigua Limited, owned by Dato Tan Kay Hock.

Dato Tan had failed to deliver on an agreement with the Antigua Labour Party (ALP) government to construct a resort on the property.

Update: Since writing this article, caribarena.com has confirmed that the joint liquidators Nigel Hamilton-Smith and Peter Wastell of Vantis Business Recovery Services are no longer the liquidators. It is also unknown who will assume the liquidation duties.

Will the International Monetary Fund Become an Accomplice of the Outlaw Government of Antigua?

The COALICION VICTIMAS DE STANFORD AMERICA LATINA asks: "Will the International Monetary Fund (IMF) become another accomplice of the Government of Antigua, knowing that this Government was a partner in crime with R. Allen Stanford in the perpetration of the largest pyramidal fraud in history? Why help them if its Government has not responded for the $7.2 billion dollars that were robbed from the victims distributed in 113 countries, with the complicity of the Financial Services Regulatory Commission (FSRC) of Antigua's Ministry of Finance?

In order to understand the criminal role played by Antigua in the perpetration of this Ponzi scheme, Jaime R. Escalona, Leader of COALICION VICTIMAS DE STANFORD AMERICA LATINA explained the following:

"Among the government of Antigua's many outstanding debts owed to Stanford's victims that it has not seen fit to pay are:

- Loans made from Stanford's companies directly to the Government of Antigua, presumably made with the investors' money. It is estimated that these loans are more than $230 million dollars.

- Payment for the illegal seizure of property by Antigua's government once the fraud was discovered in February of 2009. It is estimated that more than 40 properties were confiscated by the Government of Antigua, valued in several hundreds of millions dollars.

- Payment for the confiscation of the Bank of Antigua, property of Stanford's victims, affected illegally in 2009 by the Eastern Caribbean Central Bank (ECCB). This Eastern Caribbean Central Bank became another criminal partner of the Government of Antigua by illegally distributing the Bank of Antigua's assets between the Government of Antigua and 5 other banks in the Caribbean: Antigua Commercial Bank Ltd.; Eastern Caribbean Financial Holdings Company Ltd. in St. Lucia; National Commercial Bank (SVG) Ltd. in St. Vincent y the Grenadines; National Bank de Dominica Ltd.; and St. Kitts-Nevis-Anguilla National Bank Ltd.

According to the complaint presented by the SEC (Securities and Exchange Commission) of the United States and the investigations conducted by the Department of Justice (DOJ) of the United States; Leroy King, ex-Director of the Financial Services Regulatory Commission (FSRC) from the Ministry of Finance of Antigua, in addition to allowing Stanford to operate his Banks without real regulatory supervision, lied and kept information from the SEC and other International Regulators in order to protect Stanford's fraudulent businesses. In exchange for these favors, Stanford added him to his payroll, transferring illicit payments through Banks in the United States.

With the money robbed from the innocent depositors, R. Allen Stanford committed the following illicit acts:

- Bribed the corrupt Antigua Government Officials.
Provided money for payment of the Island's public employee's payroll.

- Financed new executive facilities for the Government.

- Donated money to build a National Library and

- Donated money to build a University complex

Escalona asks: "Does the IMF not investigate the performance of the Governments that solicit loans? Is it possible that these misdeeds are not sufficient to negate the requested loan by the Government of Antigua?"

"It is important to remind Mr. Dominique Strauss-Kahn, IMF's Managing Director and his significant team of Executive Directors that the majority of Latin American victims are honest people; many are elderly, ill or close to retirement. Stanford's victims are also citizens of countries represented by members of the IMF and for this reason we have the right to be served by the Executive Director and obtain a timely response to our requests;" commented Escalona.

In reference to the economic aid requested by Antigua, Escalona concluded saying, "At this moment the IMF should not give economic assistance to the Government of Antigua. The IMF must show solidarity with Stanford's victims, demanding the Government of Antigua to begin the immediate restitution of the money that was cruelly stolen from the victims with the complicity of the Regulatory Authorities of the Island."

Contact:
Jaime R. Escalona
Leader Coalicion Victimas de Stanford
America Latina
E-mail: jaenrodes@gmail.com;
victimasdestanford@gmail.com
Telephone: (512) 377 9255

Wicker & Cochran: IMF Should Not Approve Loan for Antigua

News Release

FOR IMMEDIATE RELEASE
May 6, 2010


CONTACT: Courtney Sanders (Wicker)
(202) 224-6253
Chris Gallegos (Cochran)
(202) 224-6414

Wicker & Cochran: IMF Should Not Approve Loan for Antigua Unless Ponzi Victims’ Property is Released
“Thousands of U.S. victims of the Stanford fraud have been financially devastated.”


WASHINGTON, D.C. – As the International Monetary Fund (IMF) moves closer to approving a substantial loan to the Commonwealth of Antigua and Barbuda, U.S. Senators Roger Wicker and Thad Cochran (R-Miss.) today called on the government of Antigua to release several hundred million dollars that it seized from fraudulent financier Allen Stanford.

Stanford is known to have had close ties with the government of Antigua and Barbuda, and is alleged, among other things, to have loaned that government tens of millions of dollars which presumably came from Stanford investor funds. U.S. authorities have taken issue with lack of cooperation by the government of Antigua and Barbuda on a number of Stanford-related issues, including its expropriation of Stanford property and its refusal to cooperate with the U.S. receiver in charge of gathering the assets of the Stanford Financial Group to distribute among the victims of the fraud.

The lawmakers sent a letter to the President, calling on him to urge U.S. representatives at the IMF to vote against the loan to Antigua and Barbuda.

Excerpts from the letter:

“In light of Antigua’s failure to assist and cooperate in the ongoing investigation of Stanford Financial or to assist defrauded investors in their efforts to recover their losses, we ask that you urge the U.S. representatives to the IMF to vote against this loan.

“Following the collapse of the Stanford Financial scheme, the Antigua government seized Stanford-owned property estimated to be worth several hundred million dollars. In addition, Antigua acknowledges that it is indebted to the Stanford entities (and in effect to its victims) for unpaid loans totaling several hundred million dollars. The government of Antigua should pay fair-market value or release the seized properties to the court-appointed receiver in the United States so the victims of the fraud may be compensated.

“The thousands of U.S. victims of the Stanford fraud are primarily retirement-age, middle-class Americans who have been financially devastated by this crime. We hope you agree that it would be entirely inappropriate for the U.S. to assist a country that has committed a crime against our own citizens. We urge you to take swift action to prevent the pending IMF loan from moving forward.”

The letter was signed by Sens. Wicker, Cochran, Mary Landrieu (D-La.), Saxby Chambliss (R-Ga.), Richard Shelby (R-Ala.), Lamar Alexander (R-Tenn.), Bob Casey (D-Pa.), Johnny Isakson (R-Ga.), Richard Burr (R-N.C.), David Vitter (R-La.), Bob Corker (R-Tenn.), and George LeMieux (R-Fla.).

Last year, Cochran and Wicker introduced a Senate resolution aimed at preventing the government of Antigua and Barbuda from receiving financial aid if it continues to hinder efforts to recover billions lost in the Stanford Financial Group fraud scandal.



In March, the lawmakers also cosponsored bipartisan legislation that would provide tax relief to victims of ponzi schemes, allowing small investors to recoup some of their losses from financial scams.

SIBL Investors Might Not See Money Any Time Soon

Former Stanford International Bank Limited (SIBL) investors might have to wait in a long line of people who will have first bite of the proceeds of the assets recovery process now underway.

This was the sentiment expressed by Attorney General Justin Simon in an interview with Fox Business, casting doubts that the investors will be repaid when assets are sold in Antigua & Barbuda.

Simon said US receiver of the SIBL Ralph Janvey was only concerned about the assets of the international bank.

“That entity is only the owner of three parcels of land. Most of the lands there are in the name of Stanford Development Company and various other entities which he formed here. In fact, on record here, he has about 23 local companies, not all of them are commercial enterprises,” the attorney general said.

“…A lot of them are simply holding land, but let me make it very abundantly clear that we do not seize lands. The constitution of Antigua & Barbuda provides that the government can compulsory acquire. It also makes provision that compensation must be paid to the former owners of the land and we intend on dealing with it on that basis.”

Despite the billions of dollars that have passed through Stanford’s hands, there are predictions that only a small fraction of that money will ever be recovered.

Whatever the amount, Simon says there will be very large claims coming in from a wide range of people, including the obvious receiver’s fee.

“Mr Stanford has left a substantial amount of debt in Antigua,” Simon said. “There are trade creditors, monies owed to our utility company, APUA in respect of electricity, telephone and that sort of thing.

“There are also the 450 employees who have been severed but severance has not yet been paid to them.”

He also said that the government was very conscious of the financial obligations left behind and it would make every effort to ensure that those various claims are satisfied in addition to the claims of various investors and depositors.

Simon said that according to law, severance payments are first and then government utilities. Creditors and former customers would then be paid in priority decided by the receivers who are recovering money and selling assets.

The value of the land being sold is also in dispute.

US investigators claimed Stanford and his accountants routinely inflated the book value to conceal the true worth of his enterprises.

After Stanford’s arrest in June this year, for his alleged involvement in a US$8 billion Ponzi scheme, investors have been claiming up to US$24 billion in damages from Antigua & Barbuda, but they are still awaiting permission from the court in the US to proceed with the suit.

Former head of the Financial Service Regulatory Commission Leroy King, who is implicated in the scheme, is currently awaiting extradition to the US to face charges.

King is accused of conducting fraudulent audits and examinations of the bank’s books in exchange for financial bribes and gifts.

He was granted bail in the amount of $500,000, with a $100,000 bond to facilitate his release. In addition to surrendering his travel documents to the court and two sureties, he has been placed on house arrest and must be accompanied by one of his sureties once he leaves his home.

Senators Introduce Stanford Investment Fraud Resolution

Antigua government taken over more than 250 acres of Standford's property

U.S. Senator Richard Shelby (R-AL), ranking Republican on the Committee on Banking, Housing and Urban Affairs, along with Senators Vitter (R-LA), Hutchison (R-TX), Cochran (R-MS), Cornyn (R-TX), Isakson (R-GA), Wicker (R-MS), and Shaheen (D-NH), introduced a resolution expressing the sense of the Senate that the Secretary of the Treasury should direct the United States Executive Directors to the International Monetary Fund and the World Bank to use the voice and vote of the United States to oppose making any loans to the Government of Antigua and Barbuda until that Government cooperates with the United States and compensates the victims of the Stanford Financial Group fraud.
Allen Stanford is known to have had close ties with the Government of Antigua and Barbuda, and is alleged, among other things, to have loaned that government at least $85,000,000, which presumably came from Stanford investor funds. The Government of Antigua and Barbuda is refusing to cooperate with the U.S. receiver in charge of gathering the assets of the Stanford Financial Group and distributing them to victims of the fraud. Despite this lack of cooperation in providing recourse to investors in the Stanford Financial Group, the Government of Antigua and Barbuda is currently seeking loans from the IMF and World Bank, both of which receive significant funding from the United States Government.

“The Ponzi scheme perpetrated by Allen Stanford cheated thousands of people, many of them in the United States, out of their investments,” Shelby said. “It is essential that to the extent possible these victims get their money back. It is absurd that the Government of Antigua and Barbuda is standing in the way of helping victims, while also holding out its hand for funding. This resolution makes clear that the United States will not accept such behavior.”

“It’s unbelievable that a government so intertwined in the allegations against Mr. Stanford has the audacity to ask for money from the IMF and World Bank. Not only was one of Antigua’s regulators allegedly a part of Mr. Stanford’s ponzi scheme, but the Antiguan government has taken over more than 250 acres of Stanford’s property and they have refused to work with the US court appointed receiver. Antigua shouldn’t see a dime of money from the US, IMF or World Bank until the victims of this fraud have first been helped,” said Vitter.

"I urge the U.S. Treasury Secretary to work with the International Monetary Fund to seek cooperation from Antigua and Barbuda in order to compensate the victims of the Stanford Financial Group fraud," Senator Kay Bailey Hutchison said.

“Instead of stonewalling efforts to recover assets linked to the scam perpetrated by Allen Stanford and his firm, the government of Antigua and Barbuda should join U.S. and international organizations in trying to find some measure of justice for victims. Government officials in Antigua and Barbuda must understand that their lack of cooperation is unacceptable,” said U.S. Senator Thad Cochran.

“Allen Stanford’s investment schemes devastated countless Texans. The IMF should not loan money to Antigua unless Antigua agrees to cooperate in reimbursing these innocent investors to the fullest extent possible,” said Senator Cornyn.

“Allen Stanford bilked billions of dollars from innocent Americans through his ponzi scheme, and the laws of Antigua shielded the Stanford Financial Group while it operated,” said Senator Isakson. “As long as the Government of Antigua and Barbuda holds assets of Stanford that are not available to the U.S. receiver, it should not receive any funding from the U.S. or the IMF and World Bank. The injured American families deserve no less.”

“Thousands of people have been victimized by the Stanford Ponzi scheme, including many who lost their life savings,” Wicker said. “The cooperation of the Antigua government is essential to helping the victims of this fraud, but this assistance has been consistently denied. It is completely unacceptable for Antigua to receive any loan from the IMF and the World Bank, both of which receive significant funding from U.S. taxpayers. The American government needs to let it be known that this lack of cooperation is not acceptable. This resolution will send that message.”

Vantis Report to Stanford's Investors

2 November 2009


Dear Sir/Madam

Stanford International Bank Limited -in Liquidation (the Bank)(SIB)

This report will be emailed to those investors who have registered on the Online claims Management System. We will not be sending this report out via the postal service, as we have found the service to be unreliable in many of the countries where investors are located and this Is compounded by the costs involved. We therefore believe that email is the most effective way to communicate wi investors. For ease of reference, a copy of this report has also been posted on our website www.vantisplc.com/Stanford

Current Position with Investor Claims and Enquiries

Investors can now register their claims on the Online Claims Management System, which can be accessed via the following link: www.vantisplc.com/Stanford. Investors who have registered on the Online Claims Management System will be able to print a statement of their account, change their address details, and formally agree their claim, or notify us of any discrepancies.

For investors who do not have access to a computer, or do not wish to register online, it will remain possible for them to submit their claims In writing directly to the Joint Liquidators via the headquarters of SIB in Antigua. We shall also advertise details of how investors can register their claims in due course through national publications in the various jurisdictions where investors reside.

We continue to deal with email enquiries, responding to investor queries both in English and Spanish.

Recognition Proceedings

United Kingdom (UK)

Assets of circa US 100 million have been located in the UK. To gain control of these assets, the Joint Liquidators sought formal recognition of our appointment. On 3 July 2009, the High Court of Justice of England & ales Issued a judgment in favour of the liquidators that the Centre Of Main Interest (COMI) of SIB is Antigua and Barbuda. This judgment has been appealed to the Court Of Appeal in the UK by Ralph Janvey, the United States (US) Receiver appointed by the Securities and Exchange Commission (SEC). The appeal hearing has been set for the 17 November 2009. As such, until the appeal is concluded, the funds in question are frozen and not available to either the Joint liquidators or Mr Janvey.

Canada

The Canadian Court did not consider our application for recognition under COMI, but issued a judgment recognising the US Receiver as the party to whom the assets located in Canada (approx. US$20 million) should pass.We have taken steps to appeal the Court's decision to not hear our COMI argument. Given the existence of further proceedings involving the Attorney General in Ontario, Canada, the funds in Canada remain frozen.

Switzerland

The decision recognition Switzerland is with the Swiss authorities and we await their decision, which we anticipate receiving within the next two months. Detailed submissions have been made to the Swiss Financial Market Supervisory Authority, as to why COMI should be granted to the Joint Liquidators.

United States (US)

Proceedings have been issued under Chapter 15 of the US bankruptcy code. As SIB is not the subject of insolvency proceedings in the US, we are seeking the recognition by the US Court of the Antiguan proceedings. Unfortunately, the US Court has not yet considered our application and,at the current time, is not able to forecast a hearing date.

US Receiver's Appeal Against the Decision of the High Court of Antigua & Barbuda

On 15 April 2009, the US Receiver made an application to the Eastern Caribbean Appeal Court of Antigua & Barbuda to appeal the decision to place SIB into liquidation and this matter remains outstanding.

US Receiver Co-operation

We, together with our attorneys, have sought to reach a co-operation agreement with the US Receiver and we set out these matters in detail in our last report. To date, no indication of co-operation has been received.

Antiguan & Barbudan land Assets

The land assets of SIB are still the subject of discussion with the Government of Antigua who took a protective step to preserve these assets. The land assets have a significant value, but will inevitably take a considerable time to realise.

Dividend Prospects for Creditors

As all the COMI recognition proceedings have either not been adjudicated upon or the decision is subject to appeal and other assets, being land with an anticipated long term realisation period, we are at present unable to estimate the level and timing of a distribution to creditors.

Other Matters

We continue with our investigations into the failure of the Bank and the alleged fraudulent manner in which its executive directors acted. You may be aware that a number of the former directors of the Bank have been charged in the US with offences relating to the fraud perpetrated upon the Bank.