Lawmakers want banks punished over massive Ponzi scheme

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Lawmakers are asking a top federal regulator to crack down on several banks connected to a mid-2000s Ponzi scheme, arguing the government hasn’t done enough to get victims compensation.

The lawmakers called on the Office of the Comptroller of the Currency (OCC) to punish several banks for holding funds for Allen Stanford, convicted in 2012 of running the second-largest Ponzi scheme in United States history.

In a letter to acting Comptroller Keith Noreika dated Aug. 8, Reps. Roger Williams (R-Texas), Bill Posey (R-Fla.), Charlie Crist (D-Fla.) and Vicente González (D-Texas) asked the OCC to update them on efforts to hold the banks accountable, compensate victims and prevent similar schemes from happening again.

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



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Will SIPC’s Brokerage Insurance Scam Help Allen Stanford Walk?

If you experience an insured loss and the insurance company doesn’t pay, you know you’ve been scammed. As I’ve discussed in a series of columns posted at http://www.kotlikoff.net, SIPC (the Securities Investor Protection Corporation) is running an enormous scam in claiming to insure our brokerage accounts against fraud. SIPC’s refusal to pay the legitimate claims of most Madoff victims and all Stanford victims makes this abundantly clear.

Even worse, SIPC is placing all brokerage account holders at enormous additional risk by standing ready to sue them if they earn a return on their investments and spend the proceeds. In fact, thanks to precedents SIPC established in the Madoff case, SIPC can declare the loss of your securities to be the result of a Ponzi scheme and sue you for up to every dollar you withdrew in the up to six years prior to the fraud’s discovery!

Reread that last sentence. It is saying that if you have made money investing with a broker, directly or indirectly, say through your IRA, you can not safely spend (or, indeed, withdraw and reinvest) your assets for up to six years from the time you’ve withdrawn them! But it is even worse than this. When you withdraw money from your IRA, you have to pay up to 40 percent in taxes. You can be sued for the amount you pay the IRS in taxes as well!

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



Ponzi Receiver Sues Tiger Woods Foundation

DALLAS (CN) – The court-appointed receiver for R. Allen Stanford’s $7 billion Ponzi scheme demands $500,000 that Stanford donated to the Tiger Woods Foundation. Ralph Janvey, with Krage Janvey in Dallas, sued the Tiger Woods Foundation and Tiger Woods Charity Event Corp. in Federal Court.

Janvey claims they received the money in two transfers from Stanford Capital Management LLC, Stanford Financial Group Co. and the Stanford Financial Group Building Inc.

“These contributions amount to fraudulent transfers because defendants exchanged no reasonably equivalent consideration for what they received,” the 12-page complaint states. “The receiver brings this complaint to rescind these transfers because the funds used were those of innocent, unwitting investors in the bank’s fraudulent Ponzi scheme.”

Janvey says the contributions the foundation was promised are based on “illegal contracts” that are no basis for keeping money that belongs to Stanford’s injured investors.

“The claims of the [Stanford entity] defendants’ creditors, including the defrauded investors in the Ponzi scheme, arose before or within a reasonable time after the transfers,” the complaint states. “Stanford Financial Group Company made the transfers with the actual intent to hinder, delay, or defraud its creditors.”
Stanford, 63, was convicted in 2012 in Houston Federal Court of selling phony certificates of deposit. He is serving 110 years in federal prison .

The foundation did not immediately respond to a request for comment Monday evening.

Founded in 1996, the foundation funds scholarships and several Tiger Woods Leaning Centers in Southern California and Washington, D.C., according to its website.

Janvey seeks disgorgement of $502,000 for fraudulent transfer and unjust enrichment. He is represented by Richard Roper with Thompson Knight in Dallas.

Janvey has aggressively tried to recover funds originating from the Ponzi scheme, filing approximately 50 lawsuits against recipients since his appointment, according to the Courthouse News database.

His targets have included the Miami Heat basketball team, Texas A&M University, the University of Miami, the PGA Tour and the ATP Tour, among others.

In January, the New Orleans-based 5th Circuit ruled that Janvey could go after $1.98 million held by Trustmark National Bank. A three-judge panel with the federal appeals court determined the cash collateral was Stanford’s property and part of the receivership estate.

Woods’ foundation is not accused of participating in the Ponzi scam, only of receiving money from it.

 

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For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group – SIVG official forum http://sivg.org.ag/

 

Stanford Lodges Appeal March 4th 2013

Allen Stanford lodged an appeal on March 4th 2013, this is particularly relevant to victims since approximately $300 million he was ordered to forfeit as a result of his conviction cannot be released until the appeals process is complete.

llen Stanford intends to represent himself in the appeal, below is the hand written letter Stanford sent to the 5th circuit court of appeals, it makes interesting reading and shows Stanford’s state of mind.

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For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group – SIVG official forum http://sivg.org.ag/

Stanford Victims Coalition Update Regarding SIPC

Dear SVC Members,

I apologize for the gap in time between updates, but I have some very exciting news today about a project I have been working on full-time all year—a legislative remedy that should get us SIPC if the bill is passed—regardless of the outcome of the SEC vs. SIPC appeal (which could still go our way). “The Restoring Main Street Investor Protection and Confidence Act,” is being introduced in the House today with a Senate companion bill to follow. A hearing of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises is set for Thursday, November 21 (victims are encouraged to attend and I will be testifying along with another Stanford victim). A Senate Banking Committee hearing will be held as well, but a date has not been set………….

To read the Complete Update from SVC Visit: http://sivg.org.ag/topic236.html

For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group – SIVG official forum http://sivg.org.ag/