Stanford Judge Lets Receiver Raise Fee, Retains 20% Discount

Janvey and Little have got their pay rise while we the victims have just lost an additional amount of the pittance Janvey has in hand....and still not sign of any pay-out for the victims!! This is an absolute disgrace.  

By Andrew Harris and Edvard Pettersson - Apr 5, 2012

The court-appointed receiver for R. Allen Stanford can bill his time starting this year at 2012 rates with a 20 per cent discount in spite of objections by Stanford investors who haven't received any money so far.

 U.S. District Judge David C. Godbey in Dallas, in an order yesterday, imposed a 10 per cent "holdback" on out-of-pocket expenses. In a separate order today, Godbey approved the payment of $1.6 million in fees and expenses that the receiver, Dallas lawyer Ralph Janvey, had requested and said he could apply later for the held-back amount of $382,253.

 Janvey's outside counsel, Kevin Sadler, argued at a hearing yesterday that the receiver's team has been working at the same pay rates since 2009. Sadler said that Janvey, who regularly charges his clients $500 an hour, has been billing $340 an hour on the Stanford case and then discounting that by 20 per cent.

A federal jury in Houston last month found Stanford, 62, guilty of fraud in what prosecutors said was a $7 billion scheme involving bogus certificates of deposit at his Antigua-based bank. He's scheduled to be sentenced on June 14. J

anvey, whom Godbey appointed in February 2009 -- four months before Stanford was indicted -- and his outside professionals, including Baker Botts LLP (1143L), have been paid more than $52 million. That sum doesn't include a court-imposed $16 million hold-back.

The is Securities and Exchange Commission v. Stanford International Bank Ltd., 09-cv-00298, U.S. District Court, Northern District of Texas (Dallas).