Lawmakers want banks punished over massive Ponzi scheme

Getty Images
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.

To view a the Full Article 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/



Advertisements

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……………………..

To view the full article, 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/



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.

Read the court Ruling Here:

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




AMENDED CLAIM FILED against Toronto Dominion Bank

The plaintiffs claim from the defendant, The Toronto-Dominion Bank (“TD Bank”):

 

(a) damages in the Canadian dollar amount equivalent to US$5.5 billion and further amounts to be determined prior to trial;

(b) an accounting and disgorgement of profits in amounts to be determined prior to trial;

(c) prejudgment and post-judgment interest on the foregoing amounts pursuant to the Court of Justice Act;

(d) costs of this action on a substantial indemnity basis plus H.S.T.; and (e) such further and other relief as this Honourable Court may deem just.

To view the full lawsuit filed by Grant Thornton against Toronto Dominion Bank on April 11th 2014 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/

Grant Thornton File U.S. $ 5.5 Billion Lawsuit against Toronto Dominion Bank

Last week Grant Thornton filed a US $5.5 Billion claim against Toronto Dominion Bank.

We will post the filing as soon as we obtain a copy.

 

To join the debate 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/