Stanford Investors shouldn’t expect money back: Lawyer - Allen Stanford Billion $ Ponzi scam

Investors shouldn’t expect money back: Lawyer
By Charles Paikert
March 3, 2009, 3:01 PM EST Post a Comment Recommend (2)

Clients and employees may be hard-pressed to retrieve money from assets controlled by R. Allen Stanford, who is accused of massive fraud by the Securities and Exchange Commission, according to Ralph Janvey, the Dallas-based attorney who is the court-appointed receiver in the Stanford case.
The “growing likelihood that claims will far exceed assets,” means that creditors are likely to recover only hundreds of millions of dollars, rather than billions, from Mr. Stanford and his companies, Mr. Janvey said in a statement released yesterday.

In addition, unaudited financial statements as of Dec. 31 show “tens of millions of dollars in unpaid bills, and to date the receivership accounting team has been able to identify only a limited amount of available cash on hand,” the statement said.

Thomas Ajamie, a Houston-based securities attorney, said: “My guess is that Stanford employees are not going to get any more pay or benefits and that their accounts will remain frozen.”

Stanford’s companies include Stanford International Bank Ltd. of St. John’s, Antigua, and Stanford Group Co. and Stanford Capital Management, both of Houston.