TUPELO – The court-appointed receiver in the Stanford financial scandal wants more than $2 million from three Mississippi financial advisers who he says got the money from the sale of bogus certificates of deposit.
The Texas receiver, Ralph Janvey, wants more than $134 million from them and 250 other Stanford Financial Group brokers to put into a victims recovery fund.
“The CD proceeds paid to the financial advisers for selling CDs came not from revenue generated from legitimate business activities,” said the receiver’s filing, “but from monies contributed by defrauded investors.”
The state advisers – Robert Lenoir of Jackson and Neal Clement and John Mark Holliday of Tupelo – also are defendants in other federal and state lawsuits filed by Mississippians who lost millions of dollars when SFG collapsed in June under the weight of a U.S. Securities & Exchange Commission investigation.
Former company executives R. Allen Stanford, James M. Davis and Laura Pendergest-Holt, two other officials and an Antiguan regulator are accused of varying roles in a $7.2 billion Ponzi scheme through the CD sales. Their assets and some of the advisers’ were frozen when the SEC complaint was filed.
The receiver’s complaint against the advisers claims the CD incentive proceeds “are little more than stolen money” and do not belong to the advisers.
Payback from the local advisers is listed as:
- Lenoir – $692,813.
- Clement – $878,954.
- Holliday – $471,578.
Their Jackson attorney could not be reached for comment. Among the three of them, lawsuits allege four different sets of investors lost about $2.2 million.
A fourth adviser, David Haggard of Georgia, has been sued by the Paschal family of Louisville and Brandon seeking return of their $26.8 million investments. The receiver wants $1.967 million returned from Haggard.
Patsy R. Brumfield/NEMS Daily Journal