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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Arbitration. Vacatur. District court refuses to set aside arbitration award based on panel’s document discovery rulings.

In Pershing, the defendant, Pershing LLC, sought to confirm an arbitration panel’s decision that it was not liable to a consortium of Louisiana Retirees who fell victim to a Ponzi scheme orchestrated by R. Allen Stanford. The Louisiana Retirees sought to vacate the award.

Pershing was a clearing broker for Stanford Group Company, a broker-dealer controlled by Allen Stanford that sold worthless securities to the Louisiana Retirees. The Louisiana Retirees claimed that Pershing failed to exercise due diligence in its relationship with Stanford that would have uncovered the scheme. The arbitration panel ruled in Pershing’s favor, and the parties then brought competing actions in the district court to confirm or vacate the decision under the Federal Arbitration Act.

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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/



US appeals court holds that Antigua-Barbuda is not liable to Stanford Ponzi victims

NEW ORLEANS, USA — The US Fifth Circuit Court of Appeals has held that the Foreign Sovereign Immunities Act (FSIA) bars Stanford International Bank Ltd (SIBL) Ponzi scheme victims from bringing a claim against Antigua and Barbuda, a foreign state. The decision reversed a ruling by the US District Court for the Northern District of Texas.

The Stanford victims successfully argued in the trial court that the commercial activity exception allowed civil suits brought by them, as well as the argument that Antigua and Barbuda had waived sovereign immunity, but the Fifth Circuit disagreed, reversing the lower court decision, on both issues.

To view the full article including a copy of the Fifth Circuit’s Court of Appeals judgment, click Here.

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



Stanford Trustee Can’t Toss Ex-Diplomat’s Ch. 7 For $1.2M

A Maryland federal judge on Monday affirmed a bankruptcy court’s refusal to dismiss Chapter 7 bankruptcy proceedings by former U.S. diplomat Peter Romero, saying that the receiver in the Robert Allen Stanford Ponzi scheme can’t pursue exempt assets for a $1.2 million judgment against Romero.

Romero, the former ambassador to Ecuador, filed for Chapter 7 bankruptcy protection after a Texas federal judge ordered him to pay $1.2 million in fraudulent transfers from his time as an adviser to Stanford. Stanford receiver Ralph Janvey was denied a…

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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 Receiver, Investors Seek OK Of $120M Willis Deal

The receiver overseeing recovery for victims of R. Allen Stanford’s $7 billion Ponzi scheme and investors on Wednesday asked a Texas federal judge to sign off on a $120 million settlement with insurance brokerage Willis Towers Watson Public Ltd. Co.

Willis had been accused of aiding Stanford’s scheme by vouching for him and his insurance policies in letters to investors, mainly in Latin America, which investors claim helped convince Stanford’s victims that their investments were safe and insured.

The receiver, Ralph S. Janvey, as well as…

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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/