A few weeks ago, Stanford Financial Group scandal victims believed they wouldn’t see any of their lost investments.
This week, the court-appointed receiver said he believes up to $1.5 billion may be recovered, which puts the return at about 20 cents on the dollar.
Late Wednesday, receiver Ralph Janvey filed a report in Dallas federal court, outlining his plan to go after the money. He says he has about $71 million in cash on hand and is going after the rest through lawsuits and other means.
In February, the U.S. Securities & Exchange Commission’s multi-year investigation of the Stanford empire became public.
In June, Stanford CEO R. Allen Stanford and his top executives, including two from Baldwyn, were accused of masterminding a $7.2 billion Ponzi scheme on some 20,000 investors of Stanford International Bank Ltd. certificates of deposit.
Since then, the investors have filed lawsuits and sought help to no avail from members of Congress and federal agencies.
Thousands of individuals report losing their life savings and retirement funds in the CD collapse.
John Little, a lawyer appointed to represent investors, told The Associated Press that Janvey’s recovery goal is “something of a fantasy” and investors should prepare to receive as little as 2 cents on the dollar.
James Davis of Baldwyn, Stanford’s chief financial officer, pleaded guilty Aug. 27 for his part in the investment scheme. Stanford and the other officials, including Chief Investment Officer Laura Pendergest-Holt of Baldwyn, pleaded not guilty and await criminal trial in Texas. No date has been set.
Contact Patsy R. Brumfield at (662) 678-1596 or firstname.lastname@example.org.
Patsy R. Brumfield/NEMS Daily Journal