Stanford Investor Accounts To Stay Frozen

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CaribWorldNews, HOUSTON, TX, Weds. Aug. 12, 2009: The accounts of some customers of accused Ponzi schemer, Sir R. Allen Stanford, will remain frozen, a Dallas Court ruled Tuesday.

The U.S. Appeals Court in Texas ruled that the assets will remain frozen while the court decides whether the customers principal and not just ill-gotten `interest` can be `clawed back` to repay victims of the alleged $7 billion Ponzi scheme.

The ruling comes weeks after a trial court ruled last month that claw back of investors` principal is not legal. The injunction freezing those accounts was set to expire tomorrow, Aug. 13.

Ralph Janvey, the Dallas attorney appointed as the receiver by a federal court to oversee assets owned by Stanford, sued about 600 holders of $925 million worth of the CDs last month after they cashed out before he took over as the `overseer.`The assets also include dozens of offices, mansions, private jets and a yacht.

In a statement, Janvey said he was `pleased` with the appeals court ruling, and that he hoped to protect all investors affected not just those who were able to cash out before the receivership took effect.

The U.S. Securities and Exchange Commission, which has filed a separate case against Stanford, has opposed Janvey`s lawsuit, saying it would harm innocent investors who did not act improperly.

On Tuesday, the appeals court also ruled that it would allow the SEC to file an opposition in the case.

Sir Allen remains jailed awaiting a trial after pleading not guilty to 21 criminal counts related to an alleged fraudulent scheme centering on the sale of phony certificates of deposit issued by his Stanford International Bank in Antigua.

 

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