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
« 70-Year Old Accountant Gets 3-Year Sentence For $6 Million Ponzi Scheme | Main | Former Lawyer Receives 10-Year Sentence For $7.8 Million Ponzi Scheme »

Stanford Victims Set To Receive 1% Of Losses In First Distribution

Nearly three years after the Securities and Exchange Commission filed an emergency enforcement action accusing R. Allen Stanford of masterminding the second-largest Ponzi scheme in history, the Receiver appointed to recover assets for victims has proposed a distribution plan that envisions an initial payout of approximately 1% of victims' approved losses.  Ralph Janvey, the court-appointed receiver, filed his Motion for Approval of Interim Distribution Plan (the "Motion") last week, seeking court approval for an initial $55 million payment to victims on a pro rata basis.  Based on total claims received thus far of of $5.13 billion, the proposed payout would amount to an initial distribution of approximately 1% of each investor's loss.

In November 2011, Janvey began the process of returning money to victims by seeking court approval of a proposed claims process.  While the motion did not elaborate on victims' expected return, a status report filed by Janvey indicated that the Receivership had over $100 million on hand and estimated future asset recoveries could exceed $1 billion.  The court approved the proposed claims process in May 2012, and established September 1, 2012 as the deadline by which victims had to submit proof of claim forms detailing their losses.  

Janvey and his team received a total of 30,289 claims.  Of that amount, nearly one-third were determined to be duplicative, and nearly 400 were submitted past the deadline and thus not eligible for consideration. Of the remaining 20,673 claims, 18,400 came from investors in Stanford's CD's, while the other 2,273 claims represented non-investor claims.  Approximately 17,000 investor claims have been approved for a total aggregate claim amount of $4.237 billion, while nearly 1,000 claims remain unresolved due to outstanding requests by Janvey for further documentation or information.  In total, investor losses were estimated at $5,131,224,932.65.

Under the proposed plan, the first distribution would go out within 90 days after court approval.  Only CD investors would be eligible to receive a distribution, with other claimants such as secured and general creditors precluded from participating.  However, before any payments would be sent out, the Receiver is proposing that victims first complete and return a certification as to whether they have applied for or received any compensation for their losses from any sources other than the Receivership.  If so, the Receiver intends to reduce payments to those investors to the extent those recoveries exceed any proposed distribution(s).  As those certifications are returned, the Receiver proposes to make rolling distributions.  

Since its inception, the Stanford receivership has been tasked with the difficult job of sorting through Stanford's international fraud, which included disagreements with foreign regulators concerning jurisdiction over tainted assets, disputes with various creditor groups, and even an investigation by the SEC over Janvey's fees.  Janvey also filed over $200 million in clawback lawsuits seeking false profits from those investors fortunate enough to benefit from their investment.  

A copy of the Motion is here.

PrintView Printer Friendly Version

EmailEmail Article to Friend

References (3)

References allow you to track sources for this article, as well as articles that were written in response to this article.
  • Response
    Stanford Victims Set To Receive 1% Of Losses In First Distribution - Ponzitracker - Ponzitracker
  • Response
    Response: OJpCWPit
    Stanford Victims Set To Receive 1% Of Losses In First Distribution - Ponzitracker - Ponzitracker
  • Response
    Incredible Nfl Jerseys - Cheapest Price tag On Line

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>