Agreement reached on Stanford assets control

By NEMS Daily Journal

DALLAS, Texas – Ponzi schemer R. Allen Stanford’s Antiguan liquidators agree to cooperate with his U.S. receiver and federal prosecutors to jointly control the convicted financier’s remaining assets, Bloomberg reports.
The receiver and liquidators have battled for control of Stanford’s assets since U.S. regulators seized his companies in February 2009.
The agreement announced Thursday by liquidators Hugh Dickson and Marcus Wide, and independently confirmed by Kevin Sadler, a lawyer for the court-appointed U.S. receiver, clears one of the last obstacles to compensating victims of Stanford’s investment scheme.
The parties “reached an agreement in principle that, if finalized and approved by the relevant authorities,” would result in coordination of victim claims, increased information sharing and cooperation on asset recovery, Wide and Dickson said in an e-mailed statement to Bloomberg.
An estimated 20,000 investors were defrauded of more than $7 billion through a Ponzi scheme that Stanford created around bogus certificates of deposit sold by Antigua-based Stanford International Bank Ltd.
Hundreds of Mississippians lost their life savings and retirement funds to the scheme. Stanford had offices in Tupelo, Jackson and Memphis.
Stanford, 63, was convicted in March of leading the fraud and stealing more than $2 billion to finance a lavish lifestyle and an array of money-losing ventures, ranging from Caribbean resort developments to cricket tournaments.
He is serving a 110-year sentence in a federal prison in Florida as he appeals his conviction and sentence.
Ralph Janvey was appointed receiver by a federal judge in Dallas to marshal Stanford’s assets and wind down his companies in the U.S. and abroad.
London-based Wide and Dickson were appointed by an Antiguan court to do the same.
The accord also represents “a resolution of pending disputes concerning funds now frozen in the U.K., Canada and Switzerland, and a release of funds for distribution to Stanford’s investor victims,” the liquidators said.

Click video to hear audio