Judge OKs Hunton’s $34M Settlement With Stanford Investors​

A Texas federal judge has signed off on a $34 million settlement, including $8.5 million in attorneys’ fees, as part of a deal to settle allegations that Hunton & Williams LLP aided Robert Allen Stanford’s $7 billion Ponzi scheme, saying that the amounts were reasonable.

Over the objections of three financial institutions involved in litigation surrounding the scheme, more than a dozen individual Stanford investors and Stanford himself, U.S. District Judge David C. Godbey on Monday determined that the $34 million was reasonable, given the potential…

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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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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/



Grant Thornton Update to Creditors June 2016

In an effort to keep you informed, below are some of the actives the Joint Liquidators have been working on since the filing of our last report.

The Creditors Advisory Committee
The CAC has been re-formed and a meeting was held recently to discuss the current status of the liquidation and its future plans. Some of the salient initiatives are listed below.

TD Bank Litigation 
TD has filed its Amended Statement of Defense and the JLs are in the process of preparing and finalizing our Reply. Meanwhile, the estate is pushing for the commencement of production and discovery proceedings. We have also been working closely with US Class Counsel to advance and coordinate the bank claims.

Law Firm Claims 
We are continuing to prosecute the claims against the law firms in Antigua. It is expected that hearings on the jurisdictional issues will be heard towards the end of this year

HSBC Claims 
HSBC agreed to provide disclosure on an agreed list of requests. In our view this issue has not been fully complied with. It has also become clear that we need to examine individuals, a position to which HSBC has yet to agree. Our current tolling agreement extending the time for filing expires on 30 June. Thus, we are of the view that we need to invoke S236 for proper production and examination. We anticipate our request to be contested.

Based on the information we have to date, we suspect that there were deficiencies in procedures by the bank and that certain “red flags” existed. We are working closely with our advisors to develop the case……………………..

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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/



Law Firms, Banks Face Fallout from Stanford Ponzi Investors

Convicted financier R. Allen Stanford arrives at the Bob Casey Federal Courthouse for sentencing in Houston, Texas, U.S., on Thursday, June 14, 2012. Stanford, found guilty of leading a $7 billion international fraud scheme by a U.S. jury, will spend the rest of his life in prison if a federal judge grants prosecutors? request. Photographer: Aaron M. Sprecher/Bloomberg via Getty Images

For years, investors in R. Allen Stanford’s $7 billion Ponzi scheme have been struggling to eke out any significant recoveries. But things are looking up for Stanford’s 21,000 global investors, not to mention for the lawyers representing them on a contingency basis.

Unable to knock out a series of investor suits, four banks and four former law firms that serviced Stanford’s business empire are increasingly feeling the pressure from plaintiffs asserting billions of dollars in claims. As the defendants fight to overturn their courtroom losses—and to find out if they must face the plaintiffs as a class—counsel for the investors are now enjoying the advantage.

In early 2012, three years after the Stanford fraud was exposed, the investors’ position appeared far weaker. Court-appointed Stanford receiver Ralph Janvey and his counsel at Baker Botts had recovered just 3 cents for each dollar lost, with nearly half going toward professional fees. By contrast, in his first two years on the job, Irving Picard, the liquidation trustee for Bernard L. Madoff Investment Securities, had already recovered $7.2 billion from the widow of Madoff investor Jeffry Picower, and $3 billion from others.

“We never had a Mrs. Picower,” said Butzel Long partner Peter Morgenstern, cocounsel in a Stanford investor class action against TD Bank, HSBC, Societe General and two smaller Texas banks that collectively processed billions of dollars of transactions for Stanford’s sham businesses.

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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/



Judge allows case against Stanford banks to go on

A federal judge in Dallas has upheld most of the claims in a major lawsuit against five banks accused of playing a role in Texas financier Allen Stanford’s massive Ponzi scheme.

Tuesday’s ruling by U.S. District Judge David Godbey means the suit filed in 2009 on behalf of thousands of Stanford victims can proceed against the banks, which include HSBC, Societe Generale, Toronto Dominion Bank, Trustmark National Bank and the Bank of Houston. The suit accuses the banks of playing “an essential role” in the $7 billion fraud, which each bank has denied.

While Godbey threw out some of the claims the victims were pursuing under Texas state law, the ruling allows the bulk of the case to move forward in federal court. That is important to the more than 20,000 Stanford victims, because unlike victims of the Bernard Madoff Ponzi scheme uncovered just two months earlier, they have recovered almost nothing. Also, while the Justice Department and federal authorities reached a $2 billion settlement last year with Madoff’s primary banker, JPMorgan Chase, they have thus far declined to pursue similar cases against Stanford’s bankers. That means that for Stanford’s victims, this civil case may be one of their last remaining hopes for a meaningful recovery.

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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/