Antigua’s Shame

Antigua has taken the assets of Allen Stanford that were paid for and seized them.

The Antiguan government has made it clear it does not intend to pay a penny for the assets even though they were paid for by the victims of Stanford’s massive fraud aided and abetted by the Antiguan government.

The government now has the luxury of selling those assets a second time thus getting paid twice while the poor victims of Stanford get nothing.
Similarly the loans made by Stanford to the Antiguan government for the hospital, the library and to the bank of Antigua have now been wiped from the books again depriving Stanford’s victims of money that is rightfully theirs.

Do the victims of Stanford get sympathy from the people and government of Antigua? No, they are told to take their passports and leave the island. They are accused of being greedy and foolish to invest in an offshore bank. Perhaps the government should remember it was their duty to oversee the banks on Antigua and it was their failure to do so that has cost 28,000 depositors from around the world their life savings.

If the investors were foolish it was to trust the morally bankrupt island of Antigua and it’s government.

. Antigua received funds from the criminal proceeds of the Stanford Enterprises.

. Antigua deceived the SEC for the purpose of perpetuating the Stanford Enterprise and enriching itself.

. Antigua has misappropriated assets belonging to the Stanford Entities and, in so doing deprived the Class of assets that should be available to satisfy their claims against the Stanford Entities.

. Antigua conspired with the Stanford Co-Conspirators to perpetrate the fraud.

. Antigua aided and abetted the fraud committed by the Stanford Co-Conspirators.

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Stanford receiver pinpoints $1.5bn

Investors in Sir Allen Stanford’s alleged $7bn Ponzi scheme may be able to recover about one-fifth of their principal, according to the receiver appointed by the US courts to administer the estate’s assets.

Sir Allen, who is facing a criminal indictment as well as a civil suit filed by the Securities and Exchange Commission, has denied all the allegations against him.
In a report filed late on Wednesday, Dallas lawyer Ralph Janvey said cash on hand at the Stanford estate totalled $128.8m, and that he was trying to recover a further $894m.
“We have identified over $1.5bn in assets that ultimately could be available to the victims of the Stanford fraud,” he said in a statement. “We may be able to return to them as much as 20 cents on the dollar, just based on activities to date.”
Mr Janvey has been aggressive in his attempts to recover cash and other assets of the complex Stanford empire, which stretched from Houston to Venezuela.
The epicentre of the alleged fraud – Stanford International Bank, which issued high-yielding certificates of deposit to investors around the world – was domiciled in Antigua.
Among the assets listed was Sir Allen’s yacht, the Sea Eagle, which the Texan businessman bought for $3.9m and on which he spent an additional $16m in “upgrades” such as replacing the teak interior with mahogany and putting in a new galley kitchen, according to court papers.
Some of the receiver’s methods – which have included attempts to claw back principal and interest from victims of the alleged fraud and to recoup money paid to former employees – have irked the SEC. The regulator has accused Mr Janvey of overstepping his authority in the matter.
The receiver has also faced criticism regarding his fee requests. Mr Janvey has billed the estate for more than $35m to date, according to court documents. The sum covers the services provided by the receiver and the small army of lawyers, consultants and forensic accountants assisting in the recovery effort, which began in February.
According to the report, more than 40 per cent of the cash on hand has been allocated towards covering those operational and professional expenses.
John Little, the examiner appointed to represent the interests of the Stanford investors, has objected to Mr Janvey’s requests, noting the fees will have to be paid out of the limited cash pool that will ultimately be used to reimburse depositors. Mr Little opposed the receiver’s clawback requests on similar grounds, saying the costs of litigation would likely outstrip the cash recovered.
Kent Shaffer, Sir Allen’s criminal defence attorney, told the Financial Times the receiver and his colleagues were “looting the revenues” of the Stanford companies.
Mr Janvey told the FT the criticisms were “simply part of a tired and fruitless effort to shift attention away from Stanford, who is responsible for a worldwide multibillion dollar financial fraud that has hurt tens of thousands of people”.

Stanford receiver shoots for $1.5B target

Investors who lost money in the alleged Ponzi scheme run by R. Allen Stanford would stand to share as much as $1.5 billion, if the court-appointed receiver gets the unfettered access to numerous assets he has been seeking for months.
According to documents filed with U.S. District Court this week, Dallas attorney Ralph Janvey hopes to be able to pay back as much as 20 cents on the dollar to defrauded investors.
So far, the documents said, $128.8 million in cash has been collected, of which $71.5 million remains after expenses.
Other assets under Janvey’s control include private equity, the Stanford Bank of Panama, $5 million in coins and bullion, domestic real estate and Stanford’s personal property, including private aircraft, Stanford’s $3.9 million yacht and vehicles. Another $335 million in foreign accounts is on Janvey’s hit list, but so far only Canadian courts have sided with the receiver and no other definitive action to release any of those funds is under way.
Janvey expects the pending sale of the Bank of Panama to fetch about $13.5 million
Many of the assets are subject to other lawsuits from outside investors that could affect the receiver’s ability to reach the $1.5 billion goal. Janvey is awaiting word from federal appeals court on approval of a plan to go after $1 billion in claw-back claims against former Stanford defendant investors, brokers and managing directors.
With those question marks in mind, Janvey himself noted in the court document that “the ultimate success of these efforts is necessarily uncertain ….”
Janvey and his team of attorneys and consultants have been paid about $21 million so far for their work on the case.
Stanford is under lock and key in Houston awaiting trial for allegedly orchestrating a $7 billion Ponzi scheme using certificates of deposit issued through a bank in Antigua under his control, that authorities say Stanford used to support his lavish lifestyle.

Stanford victims want US to block Antigua money

Chairman of the Antigua Labour Party Gaston Browne said efforts by a group of United States investors to sue the local government over the Sir Allen Stanford matter is out of line.

“That case is not a justifiable one, the investors had a private contract with Stanford, they don’t have any contractual agreement between themselves and the government and for them now to look for the government to pay them is absolute nonsense.”

The Stanford Victims Coalition and the law firm Morgenstern & Blue sent a letter on Friday to over 50 US senators and congressmen asking them to block Antigua from receiving any funding from the IMF, this according to a report in another news medium.

According to the article, Antigua’s involvement in the alleged US$7.2 billion Stanford International Bank scandal is one example of the country’s alleged history of corruption.
In the article, it is alleged that this fraud led to the losses of life’s savings belonging to 28,000 victims from around the world, it also indicated that the country is accused of profiting from its relationship with Stanford for many years and now it has taken steps to expropriate properties that were purchased with up to US$1 billion of investors funds.

Browne said the government of Antigua and Barbuda should not be on the losing end of this debacle, as the government did not have any contractual agreement with the investors.
He, however, added that the Antiguan government should not have acquired those real estate properties belonging to Sir Allen in the wholesale manner in which they did as forewarned by the opposition party.

“We had said to them for instance when we went to Parliament that if there were strategic assets like around the airport that they needed to acquire for expansion and soon, that would be satisfactory, but for them to acquire other assets which evidently is of no particular interest to the development of Antigua and Barbuda is creating a liability for the government.”

The Party chairman said those assets were part of the receivership estate and should have been shared among the creditors.
Efforts to contact Minister of Finance Harold Lovell for comment proved futile as he was engaged in a series of meetings.

Stanford Ailing, but in court

R. Allen Stanford appeared ill during a court appearance Wednesday as lawyers discussed possible trial dates for him and others accused of running a $7 billion fraud.

Stanford was thinner than in previous appearances. He spit blood into a water cup while sitting in court. Senior U.S. District Judge David Hittner asked Stanford if he needed attention, but he said he was all right.

“It’s some sort of illness, we’re not sure what,” said his lawyer, Kent Schaffer . He said his client speaks to no one but prison guards and his lawyers, and it’s taking an emotional and physical toll.

Stanford has had surgery for an aneurysm in his leg since he was jailed and was hospitalized after a fight with another inmate. He is being held without bail as a possible flight risk because of international connections and ability to get funds.

Schaffer complained about Stanford’s treatment in the downtown Houston Federal Detention Center, saying he’s held in solitary confinement, isn’t getting adequate medical attention and can’t see or phone his family.

A spokesman for the federal Bureau of Prisons could not be reached for comment on that claim.

Stanford, a Texas native who has lived mostly in the Caribbean for many years, founded Houston-based Stanford Financial Group. He faces 21 counts of conspiracy, fraud, bribery and obstruction of justice.

He and co-defendants are accused of cheating investors who bought certificates of deposit issued by Stanford International Bank on the Caribbean island of Antigua, and sold through Stanford Financial Group companies.

Three of Stanford’s codefendants are free on bail and wore street clothes for Wednesday’s court hearing, while their ex-boss sat nearby shackled and in green jail clothes.

Lawyers on both sides estimated the trial could take four months. Prosecutor Gregg Costa asked for a trial date no later than next October.

Research time a concern
But defense lawyers said they haven’t had time to dig into the government’s 5 million pages of documents and need weeks before they even know when they can be prepared for trial.

Mike Sokolow, the public defender appointed to handle Stanford’s case, officially withdrew Wednesday. Schaffer, a private lawyer also appointed, said he will stay on now that a Dallas judge overseeing a civil fraud case against Stanford and others has said an insurer can pay for their defense.

Others likely covered
Stanford’s criminal co-defendants who appeared in court Wednesday — former Stanford company executives Laura Holt, Gilbert Lopez and Mark Kuhrt — also should be covered by the company insurance policy.

Costa said the fifth defendant, Leroy King, a bank regulator in Antigua, is under house arrest there and the government hopes he will be extradited in time to participate in the trial.

Baroness Kinnock and Foreign Office ignore Pleas to implement Treaty

Baroness Kinnock and the Foreign office have turned their backs on the British victims of Allen Stanford’s massive fraud by failing to implement the treaty that is held “Between the Government of Antigua and the Government of the United Kingdom For the Promotion and Protection of Investments”.
The agreement exists between the two countries and promises restitution for anyone who looses money or investments between these two countries. Information contained in the documents make it clear that both governments are making a promise to recompense investors who have lost money, especially where property or assets have been seized, as in the case of Allen Stanford.