Judge considers Stanford claims concerns

By Daily Journal Report

DALLAS – A group of Stanford International Bank Ltd. depositors asked a U.S. judge to order the receiver he appointed and rival bank liquidators selected by a Caribbean court to collaborate on a process to pay victims of R. Allen Stanford’s $7.2 billion fraud scheme.
According to BusinessWeek, District Judge David Godbey on Thursday described as “mind boggling” the continuing dispute between Dallas lawyer Ralph Janvey, whom Godbey appointed in February 2009 to collect and liquidate Stanford assets to pay off creditors, and the two Grant Thornton accountants asked to do comparable work by the Eastern Caribbean Supreme Court for Antigua and Barbuda.
A federal jury in Houston in March convicted Stanford, 62, of leading an international banking fraud scheme centered on the sale of certificates of deposit by his Antigua-based bank. He is scheduled to be sentenced on June 14.
Godbey declined to immediately grant Janvey’s request that he set a deadline for the filing of claims by Stanford’s fraud victims. The receiver was appointed after the U.S. Securities and Exchange Commission filed suit against Stanford and his bank.
“I’m not saying that I want it to be a fixed price contract,” the judge said, adding that he sought assurance “we are not going to spend another $50 million.”
The Janvey and Grant Thornton receivers have spent about $150 million in their global efforts to recover Stanford assets, according to the creditors’ filing today. They haven’t agreed on a unified plan for processing victim claims and payments.
Almost $3.5 billion in claims have been submitted to the Janvey receivership without a formal claims process in place, Business Week reported.