Receiver seeks $1.5b in Stanford case
DALLAS - The lawyer tracking down money lost in what authorities say was a massive Ponzi scheme run by R. Allen Stanford says he hopes to gain control of more than $1.5 billion that would be then returned to fleeced investors.
Court-appointed receiver Ralph Janvey filed a report in federal court in Dallas late Wednesday outlining his plan to go after the $1.5 billion to provide allegedly defrauded Stanford investors a return of as much as 20 cents on the dollar.
But John Little, a lawyer appointed to represent investors, said that Janvey’s recovery goal is “something of a fantasy’’ and that investors should prepare to get back as little as 2 cents on the dollar.
Authorities accuse Stanford of leading a $7 billion Ponzi scheme by promising inflated returns to about 28,000 investors on certificates of deposits at his Antiguan bank. The Securities and Exchange Commission said Stanford instead used the money from new investors to pay off old ones. They also accuse him of skimming more than $1 billion to fund his lavish lifestyle.
Stanford denies the allegations. His attorney did not return a message seeking comment.
Janvey, who is winding down Stanford’s businesses and collecting money to return to investors, has about $71 million in cash. He is pursuing the rest through lawsuits and other means, such as liquidating nearly $51 million in Stanford’s assets.
