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Monday, March 2, 2009
The appointed lawyer for the Stanford Group has told a United States (US) Federal Court that the entity is facing a liquidity crisis.
Ralph Janvey, Receiver for the Stanford Group, told the court that hundreds of millions of dollars of Stanford assets will likely be recovered for investors instead of billions.
Stanford was accused by the US Securities and Exchange Commission that his two top aides, Chief Financial Officer Jim Davis and Chief Investment Officer Laura Pendergest-Holt, along with three of his companies, of running a "massive Ponzi Scheme" and misappropriating at least US$1.6 billion of investors' money.
The Federal Court in Dallas appointed Mr. Janvey to take control of Stanford International Bank, Stanford Capital Management and their parent Stanford Group.
The judge extended the order until March 12, this included freezing of all assets and forbids the destruction of documents related to the case.
Meanwhile,
Thousand of investor accounts with Texas billionaire Sir Allen Stanford's financial companies will remain frozen for another ten days stated United States District Judge David C. Godbey.
During the federal investigation of Stanford's businesses the accounts were frozen.
Sir Allen's companies have been in receivership since the Securities and Exchange Commission filed a civil action alleging his companies were involved in a US$8 billion investment fraud.
The receivership reported it had planned to start releasing accounts of less than US$100 000 to their owners by March 16
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