STANFORD PONZI SCHEME VICTIMS TO RECOVER ONE PERCENT OF LOSSES
January 11, 2013
By U.S. Receiver (Ralph Janvey)
The Receiver requests that the Court order a first interim distribution of funds from the Receivership Estate
for the benefit of defrauded investors in certificates of deposit ("CDs") issued by Stanford International
Bank, Ltd. ("SIB"). These investors were the primary source of both the funds that fueled the Stanford Ponzi
scheme and the funds recovered by the Receiver. They are also the primary victims of the Stanford fraud by
both value and number of claims.
Treatment of Claims under the Interim Plan.
1. The Interim Distribution Amount shall be apportioned among Investor CD Claimants on a pro rata basis. Such Investor CD Claimants shall receive payments equal to a percentage (the "Distribution Percentage") of their Allowed Claim Amounts as reflected in their Notices of Determination. The Allowed Claim Amounts shall be based on the Investor CD Claimants' Net Losses. Any future distributions to Investor CD Claimants shall likewise be pro rata based on Investor CD Claimants' Allowed Claim Amounts.
2. The Distribution Percentage equals the Interim Distribution Amount divided by the sum of: (a) all Allowed Claim Amounts for non-deficient Investor CD Claims as of the filing of the Motion (the "Investors' Allowed Claim Amounts"), and (b) the Receiver's estimate of the Allowed Claim Amounts for all Investor CD Claims that are deficient (the "Investors' Deficient Claim Amounts"). The Distribution Percentage can be represented mathematically as:
Interim Distribution Amount
(Investors' Allowed Claim Amounts) + (Investors' Deficient Claim Amounts)
3. As of January 2, 2012, the aggregate of the Investors' Allowed Claim Amounts equaled $4,237,737,851.75, and the aggregate of the Investors' Deficient Claim Amounts equaled $893,487,080.90. The Distribution Percentage, therefore, is calculated as follows:
________________________ = 1%
4. Investor CD Claimants will receive distributions under the Interim Plan equal to their Allowed Claim Amounts
as reflected in their Notices of Determination multiplied by the Distribution Percentage. The amount of a given
Investor CD Claimant's interim distribution can be represented mathematically as:
(Particular investor's Allowed Claim Amount) x (Distribution Percentage)
5. If an Investor CD Claimant serves and files a timely objection to a Notice of Determination, the Investor CD Claimant is not disqualified from receiving a distribution under the Interim Plan. However, the Investor CD Claimant shall participate in this interim distribution based initially on the original Allowed Claim Amount in the Notice of Determination. If the Investor CD Claimant ultimately succeeds in increasing the Allowed Claim Amount (either by stipulation with the Receiver or by Court order sustaining the Investor CD Claimant's objection), the claimant shall receive a supplemental payment representing 1% of the difference between the Allowed Claim Amount in the Notice of Determination and the Allowed Claim Amount after final resolution of the claimant's objection.
6. To the extent a claimant receives one or more collateral recoveries, the Receiver will reduce payments to such a claimant to the extent necessary to ensure that all the Investor CD Claimants are treated equally with respect to the percentage of their Allowed Claim Amounts they recover from all sources as of the date of the payments.
7. Each Investor CD Claimant's interim distribution shall be based solely on his Investor CD Claims and not on his other types of Claims, if any.
8. Nothing in this Order shall preclude future distributions to Investor CD Claimants or other Claimants under a different plan. Nor shall anything in this Order restrict the Receiver's authority to compromise and settle any Claim, or resolve any objection to a determination, at any time, as appropriate, without further order of this Court.
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