Las víctimas olvidadas de Stanford ahora disponible en español

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

Thursday, April 17, 2014

Stanford's Ponzi case could mean millions for KC law firm

Kuckelman Torline Kirkland & Lewis has landed a high-profile contract that could net the firm as much as $30 million in legal fees. The Overland Park litigation boutique will continue work that's related Allen Stanford’s $7 billion Ponzi scheme. Stanford was sentenced to 110 years in prison in 2012 for orchestrating one of the world’s largest Ponzi schemes, second only to Bernie Madoff. KTKL will handle litigation against a number of insurance companies in an effort to recover money for the estimated 28,000 people who invested in Stanford’s scheme.

 So far, those victims have had little to no luck recovering their investments. In March, CNBC conducted an exclusive interview with Dallas lawyer Ralph Janvey, the court-appointed receiver in the case. As of that date, Janvey said he had recovered only about $263 million, about half of which had been depleted by expenses.

 Janvey recruited KTKL to handle the insurance litigation, probably because of its partners’ success in handling insurance litigation related to the 9/11 terrorist attacks. In that case, Mike Kuckelman was one of the lead lawyers who helped broker a settlement that recovered $1.2 billion for one of the primary property insurers of the World Trade Center. In the Stanford case,

KTKL will go after insurance policies that had been bought to protect against a variety of losses, including directors and officers insurance and professional indemnity insurance.

 But not everyone was in support of the hire.

 According to its contract, KTKL agreed to work on a contingency fee basis, meaning it will be paid only if it secures a recovery. However, if it does recover money, the firm will receive one-third of all recovered funds.
“The proceeds of the Lloyd’s of London insurance policy, with a face value of $100 million, are one of the last remaining major assets of the (Stanford) estate … ,” one group wrote in opposition to the appointment. “A one-third contingency fee is excessive given the policy amounts and the minimal amount of recovery the Receiver has obtained for investors to date.”

 However, a judge approved the firm’s hire. KTKL will begin work immediately on the case, which is being prosecuted in Dallas. Stanford still denies any wrongdoing and is appealing his sentence.

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

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