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July 30, 2009 12:10 am
The receiver appointed to administer the affairs of the businesses owned by Sir Allen Stanford, the alleged Ponzi schemer, is seeking to recoup almost $1bn from investors, court documents show.
Ralph Janvey intends to claw back $925m linked to certificates of deposit issued by Stanford International Bank in Antigua.
The US Securities and Exchange Commission claimed in February that these so-called CDs were at the heart of an elaborate $7bn Ponzi scheme operated by Sir Allen.
The financier, who was indicted in June on 21 counts related to the alleged fraud, is in federal custody awaiting trial. He has denied all the charges against him.
In court papers filed in Dallas, Mr Janvey said he wanted to recover “loans, commissions, bonuses or other compensation paid to financial advisers for selling CDs, and interest or redemptions to investors”, which he further described as “little more than stolen money and do not belong to persons who received such funds but belong instead to the receivership estate”.
The move comes days after the SEC objected to a separate attempt by Mr Janvey to claw back about $3m in proceeds from five investors in the Antiguan CDs.
In April, Mr Janvey sued 66 former Stanford Financial advisers for more than $40m, which, the receiver said, they had received for soliciting CD clients.
Mr Janvey said the clawbacks were necessary to “achieve equity for all investors by maxim-ising the assets of the estate”.
Among the investors Mr Janvey is pursuing in the clawback case, according to a 29-page listing of former Stanford brokers and clients, is Libyan Foreign Investment Co, which is listed as having realised $54.8m in proceeds from Antigua CDs from 2008 to 2009.
Last month, Andrea Stoelker, Sir Allen’s girlfriend, said in a statement that the Libyan government had invested at least $500m in the group.
The Libyan Investment Authority, which disputed the claim, did not return calls and e-mails seeking comment on Mr Janvey’s filing.
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