Stanford Judge Approves Interim Distribution to Victims
May 31, 2013
By Tom Korosec & Andrew Harris
A plan by a court-appointed receiver to distribute assets recovered from R. Allen Stanford's Ponzi scheme
to investors was approved by a federal judge in Dallas.
U.S. District Judge David C. Godbey accepted the plan by Ralph Janvey, the receiver appointed in 2009 to
marshal and liquidate Stanford's personal and business assets, to make a $55 million interim distribution
to about 17,000 claimants, or about 1 cent for each of the $5.1 billion lost in the fraud scheme.
"We will follow it up in a subsequent distribution as the money comes in," Janvey's attorney, Kevin Sadler
of Baker Botts LLP, told Godbey at a court hearing in April.
Ponzi scheme victims of Bernard L. Madoff, who was arrested in December 2008, recovered more than $5.4
billion. Clients of the MF Global Inc. brokerage were paid about $4.9 billion after its parent, MF Global
Holdings Ltd., failed in October 2011. Victims of a scheme by Peregrine Financial Group Inc. founder Russell
Wasendorf, who prosecutors last year said stole $215 million, received an interim distribution of $123
million.
A federal jury in Houston last year found Stanford, 63, guilty of lying to investors about the nature and
oversight of certificates of deposit issued by his Antigua-based bank. The jurors decided he must forfeit
$330 million in accounts seized by the U.S. government.
The SEC case is Securities and Exchange Commission v. Stanford International Bank, 09-cv-00298, U.S.
District Court, Northern District of Texas (Dallas). The criminal case is U.S. v. Stanford, 09-cr-00342,
U.S. District Court, Southern District of Texas (Houston).
To contact the reporter on this story: Andrew Harris in the Chicago federal courthouse at aharris16@bloomberg.net
To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net
Read the ORDER APPROVING RECEIVER'S INTERIM DISTRIBUTION PLAN.
STANFORD RECEIVERSHIP CERTIFICATION NOTICE
Before making distribution payments under the Interim Plan, the Receiver is required to send a Certification Notice to the
Investor CD Claimants. This Certification Notice must ask each Investor CD Claimant for certification regarding whether they
have applied for or received compensation for their claimed losses from sources other than the Receivership and, if so, the
amount of such compensation. Investor CD Claimants must timely respond to this Certification Notice as a condition of
receiving payment under the Interim Plan.
EXHIBIT B: CERTIFICATION NOTICE
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