- Investors fleeced in $6B Stanford scheme get a penny on the dollar from court-appointed receiver
Investors fleeced in $6B Stanford scheme get a penny on the dollar from court-appointed receiver
Posted Oct 11, 2013 10:10 AM CST
By Martha Neil
Investors fleeced of $6 billion by now-imprisoned swindler R. Allen Stanford have gotten restitution checks from a court-appointed receiver.
They range from $2.18 to $110,000, amounting to less than a penny of recovery for each dollar lost, reports the Center for Public Integrity.
The receiver, Ralph Janvey, and his team recovered $234.9 million from Stanford's bankrupt company and charged about $124 million for doing so.
Attorney Kevin Sadler of Baker Botts is working with Janvey on the recovery effort, and said unwinding the 18-year operation was a complex undertaking. At one time, companies in the Texas-based Stanford Financial Group had offices in 23 states and 13 foreign countries, and over 3,000 employees.
ABAJournal.com (June 2009): "Motion Seeks to Oust Baker Botts from Role in Stanford Case"
ABAJournal.com (Sept. 2009): "Stanford Receiver Defends $27M Bill Against SEC’s ‘Shrill Objections’"