Hearing to take testimony about Stanford losses

Investors who lost money in the collapse of Stanford Financial Group and its associated companies get a chance today to speak or learn more about efforts to recover their savings.
A public hearing is schedule for 1 p.m. in the State Capitol. It’s hosted by the Mississippi Secretary of State’s Office.
About a half-hour of the 90-minute meeting is set aside for Stanford client testimony, the agenda shows.
On the list for client testimony are Tupeloans Al Pleasants and Walt Walton. While Pleasants says he has not taken legal action to recover his investment, Walton has sued his former financial adviser in Chancery Court of Lee County.
Various officials also are expected to provide details about the status of the Stanford case, legal issues and regulatory changes.
In February, the Stanford financial empire collapsed and investors lost their certificate of deposit savings when a court froze assets at the behest of the U.S. Securities & Exchange Commission.
The SEC had become suspicious of the global business and its claims of strong yields, despite the uncertainty of worldwide finances.
Ultimately, Stanford’s CEO R. Allen Stanford, four former executives and an Antiguan regulator were accused in a $7.2 billion Ponzi scheme. They pleaded not guilty and await trial, except for one, James M. Davis of Baldwyn, who pleaded guilty.
Meanwhile, the court-appointed receiver has begun to liquidate the assets of Stanford and the others to recover as much money as possible for the investors.
However, some observers speculate that the receiver’s recovery team work is so costly there won’t be anything left, when they’re done.
Among the officials expected at Monday’s hearing will be three secretaries of state, Delbert Hosemann of Mississippi, Ross Miller of Nevada, and Trey Grayson of Kentucky.

Contact Patsy R. Brumfield at (662) 678-1596 or patsy.brumfield@djournal.com.

Patsy R. Brumfield/NEMS Daily Journal

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