Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Recent SEC Releases
« Mets Owners File Additional Brief in Bid to Dismiss Madoff Trustee's Lawsuit | Main | Fugitive Arrested in $80 Million Ponzi Scheme »

Stanford Investors Accuse Receiver of Collecting Nearly All Money Recovered As Fees

Ralph Janvey, the court-appointed receiver tasked with dismantling the alleged multi-billion dollar scheme perpetrated by R. Allen Stanford, today faced an unlikely threat: the investors for whom he has been seeking to recover assets.  In a motion filed in Texas federal court Friday, a group of investors claimed that Janvey's expenses to date amounted to nearly all of the assets recovered thus far as a result of Stanford's fraud.

Several investors filed a motion to intervene on July 7, making several startling accusations.  First, it states that out of the $120 million collected thus far to date by Janvey, nearly all - $118.2 million - has been paid to Janvey and his legal team as expenses, leaving just $1.5 million available to investors.  This includes allegations that Janvey billed $20 million in his first eight weeks as Receiver, and $46 million during the first year of the receivership.  Additionally, the investors allege that not one distribution has been made to investors since Janvey's appointment.  As if the amount itself was not enough, the motion breaks down each investor's pro rata share of that $1.5 million - approximately $71.42 per investor.  

But that's not all.  The motion further alleges that the Stanford Investors Committee - the court-installed group responsible for overseeing the Receiver's actions - had made an arrangement with the receiver to  receiver 25% of all recoveries from the multitude of fraudulent transfer lawsuits filed on behalf of the Receivership estate.

Ultimately, the investors seek the appointment of a representative to the Stanford Investors Committee to represent the rights of over 500 investors who had accounts with Stanford.  There has been no response from the Receiver.  Stanford is set to stand trial in January.  

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>