Las víctimas olvidadas de Stanford ahora disponible en español

Las víctimas olvidadas de Stanford, ahora disponible en español en:

http://victimasolvidadasdestanford.blogspot.com/

Saturday, September 13, 2014

Net Winners in Stanford Ponzi Scam Lose Appeal

Profits seen by some investors in R. Allen Stanford's Ponzi scheme may face seizure by the court-appointed receiver trying to make victims whole, the 5th Circuit ruled.

 Ralph Janvey, with Krage Janvey in Dallas, has filed more than 70 federal fraudulent-transfer suits in Dallas since his appointment. He has targeted former Stanford entities and employees, individual investors and third-party recipients of Ponzi scheme proceeds - included the Republican National Committee, the Democratic Congressional Campaign Committee, Miami Heat basketball team, the Tiger Woods Foundation, Texas A&M University, the University of Miami, the PGA Tour and the ATP Tour.

 In a partial summary judgment for Janvey early last year, U.S. District Judge David Godbey said the hundreds of "net winners" who received interest on top of their principal would still be "in far better shape" after paying back the interest than most other Stanford victims "who lost everything." 

A three-judge panel with the 5th Circuit affirmed Godbey's ruling on Thursday, concluding the net winners have no valid claim to the interest on their phony certificates of deposit (CDs).

 "Here, we conclude that there is no valid claim for interest," the 22-page opinion states. "The CDs issued by [the Stanford International Bank] are void and unenforceable. This is because '[t]o allow and [investor] to enforce his contract to recover promised returns in excess of his undertaking would be to further the debtors' fraudulent scheme at the expense of other [investors].'"

 Any recovery would be paid out of money "rightfully belonging" to the other victims of the Ponzi scheme, not from the Stanford entities' own assets "because they had no assets they could legitimately call their own," Judge Patrick Higginbotham wrote for a three-member panel in New Orleans.

 The appeals court also affirmed that principal payments made to the net winners are off-limits to Janvey and not subject to fraudulent-transfer claims.

 "Unlike interest payments, it is undisputed that the principal payments were payments of an antecedent debt, namely fraud claims at the investor-defendants have as victims of the Stanford Ponzi scheme," Higginbotham wrote.

 Net winners who tried to shelter their profit in individual retirement accounts that are exempted by the Texas Property Code are also not entitled to an exemption, the court found.

 "As we recently explained, to claim this exemption, a defendant 'must establish that she has a legal right to the funds in the IRA,'" the opinion states. "The investor-defendants have offered no evidence to the district court that they have a legal right to the funds despite those funds being the product of a fraudulent transfer. The district court did not err in denying this exemption."

 Janvey could not be reached for comment Thursday evening.

Read more here:

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


Friday, September 12, 2014

Stanford Investors Want SEC Negligence Claims Revived

Investors in Robert Allen Stanford's $7 billion Ponzi scheme asked the Eleventh Circuit to reinstate their class negligence claims against the U.S. Securities and Exchange Commission, arguing that the agency failed in its statutory duty to properly report the massive scheme.

 The investors' attorney Gaytri Kachroo of Kachroo Legal Services PC told an Eleventh Circuit panel that the SEC has a nondiscretionary duty mandated by Congress to immediately notify the Securities Investor Protection Corp. if it learns that a broker-dealer is in financial difficulty. 

The SEC's Dallas-Fort Worth, Texas, office conducted several investigations of the Stanford Group between 1997 and 2004, and concluded that the Stanford Group was a Ponzi scheme but failed to report the investigations to SIPC, according to court documents.

 This mandatory duty to notify SIPC should not fall under the misrepresentation and discretionary function exceptions of the Federal Tort Claims Act, Kachroo said. Otherwise, the FTCA fails in its legislative objective, she said.

Read the full article here:

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


Saturday, September 6, 2014

UPDATE 1-U.S. SEC won't appeal ruling against Stanford's Ponzi victims

The U.S. Securities and Exchange Commission will not appeal a recent court decision that thousands of victims of financier Allen Stanford's Ponzi scheme were ineligible under federal law to file claims to recoup their losses, an SEC spokesman said on Friday.

 On July 18, a federal appeals court in Washington rejected the SEC's bid to force the Securities Investor Protection Corp (SIPC) to start paying an estimated 7,800 former customers of Stanford Group Co.

 The court concluded that these victims did not qualify as "customers" eligible for compensation by SIPC, which liquidates failed brokerages. It upheld a July 2012 ruling by a federal district judge.

 SEC spokesman John Nester on Friday said in an email that the regulatory agency decided "after very careful deliberation" not to pursue the case further.

 He also said the SEC remains committed to Stanford's victims, and will work with the Stanford firm's receiver, the U.S. Department of Justice and others to maximize recoveries.

 Stanford, 64, is serving a 110-year prison term following his March 2012 conviction for running an estimated $7.2 billion fraud.

 The scheme was centered on bilking investors with fraudulent certificates of deposit issued by his Antigua-based Stanford International Bank.

 Angela Shaw Kogutt, founder of the Stanford Victims Coalition, called the SEC decision "a complete injustice" to Stanford victims.

 "Unfortunately, Stanford victims have no private right of action against SIPC," she said in an email. "The Commission has caved to an organization it is supposed to oversee."

 The case had been the first time the SEC had sued to force SIPC to start a court-supervised liquidation.

 While the SIPC has handled other big liquidations, including that of Bernard Madoff's former firm, it contended that Stanford's customers did not qualify for help because the Antigua bank was not a member of SIPC, unlike Texas-based Stanford Group.

 In ruling for SIPC, Circuit Judge Sri Srinivasan had written for the appeals court that "we fully agree" with the district court judge, who expressed that he had been "'truly sympathetic to the plight' of the victims." (Editing by Meredith Mazzilli and Jonathan Oatis)

Read more here:

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


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 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!

Read the full article here:

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