Former Stanford girlfriend, Stoelker, ordered to pay $600K

Date: Wednesday, September 26, 2012, 11:25am CDT

Andrea Stoelker, the girlfriend of R. Allen Stanford and a former Stanford Financial Group executive, has been ordered to pay more than $600,000, court records show.
Documents show U.S. District Judge David Godbey issued the final judgment against Stoelker on Sept. 24, ruling on a complaint filed in 2010 in the U.S. District Court’s Northern District of Texas Dallas Division by Ralph Janvey, the court-appointed receiver for the Stanford International Bank Ltd.
According to the complaint, Stoelker, a Houston resident, was the former president of Stanford Financial Group Global Management LLC, the former president of Stanford 20/20 (Stanford’s cricket organization), and Stanford’s girlfriend. In June, Stanford was sentenced to 110 years in prison for his role in a $7 billion Ponzi scheme. He was found guilty of 13 counts of fraud in March.
According to the 2010 complaint, “revenue from the sale of fraudulent certificates of deposit generated substantially all of the income for the Stanford defendants and the many related Stanford entities,” and Janvey identified more than $560,000 in transfers of CD proceeds from Stanford parties to Stoelker.
“Each payment of CD proceeds from the Stanford parties to Stoelker was made with actual intent to hinder, delay, and defraud the Stanford parties’ creditors,” Janvey asserted in the complaint.
In the Sept. 24 judgment, court documents show Godbey ordered Stoelker to pay $568,206 in voidable fraudulent transfers she received, $35,748 in attorneys’ fees and $406 in costs and expenses, as well as prejudgment interest at the rate of 6 percent per year, as calculated from the date of each respective transfer to Stoelker.

Ex-Stanford exec gets 3 years for $7B swindle

A top executive in the now-defunct empire of disgraced Texas financier R. Allen Stanford was sentenced to three years in prison Thursday for her role in helping the once jet-setting businessman bilk investors out of more than $7 billion in one of the biggest Ponzi schemes in U.S. history.
Associated Press

A top executive in the now-defunct empire of disgraced Texas financier R. Allen Stanford was sentenced to three years in prison Thursday for her role in helping the once jet-setting businessman bilk investors out of more than $7 billion in one of the biggest Ponzi schemes in U.S. history.

Former Stanford chief investment officer Laura Pendergest-Holt’s sentence was part of a plea agreement reached with federal prosecutors. She had pleaded guilty in June to one count of obstruction of a U.S. Securities and Exchange Commission proceeding in exchange for the sentence.

After U.S. District Judge David Hittner handed down the sentence he revoked Pendergest-Holt’s bond, and she was taken into custody. She waved to her husband Jim Holt before she was put in handcuffs and taken from the courtroom by federal marshals.

A tearful Pendergest-Holt told Hittner prior to sentencing that she was sorry for putting her trust in Stanford and others in his financial empire, including the former chief financial officer, James M. Davis, who also has pleaded guilty and faces up to 30 years in prison.

“I’m sorry I was so trusting in people who didn’t deserve my trust, and my trusting them caused harm in others. I apologize greatly,” she said.

Prosecutors said Stanford, 62, used the money from investors who bought certificates of deposit from his bank on the Caribbean island nation of Antigua to fund a string of failed businesses, bribe regulators and pay for a lavish lifestyle that included yachts, a fleet of private jets and sponsorship of cricket tournaments. Authorities said Stanford and others in his companies lied to investors from more than 100 countries, telling them their funds were being safely invested in stocks, bonds and other securities.

Pendergest-Holt, 38, a native of Baldwyn, Miss., was the first person indicted in the case. Prosecutors said she and other executives conspired to hide the bank’s true financial health and provide misleading testimony to the SEC in 2009 when it was investigating Stanford’s bank.

One of her attorneys, Chris Flood, told Hittner that Pendergest-Holt was also a victim of Stanford’s Ponzi scheme and lost her life savings. Flood had asked that she not be imprisoned for three years but be allowed to serve that time in home confinement, a halfway house or a combination of the two.

She “is an extremely upstanding citizen and not a danger to anyone,” Flood said. “Don’t punish her for the crimes of Allen Stanford or Jim Davis.”

But prosecutor Jason Varnado told Hittner that from Pendergest-Holt’s statement in court on Thursday and from letters her family and friends had submitted calling her a victim, the former Stanford executive wasn’t taking full responsibility for what she had done. Varnado asked that she be sent to prison.

“She led (investors) to believe (their money) was invested in a particular manner … Ms. Holt is not a victim. She is a federal felon,” Varnado said.

As part of the plea deal, prosecutors will drop 20 other counts she faced, including conspiracy, wire and mail fraud.

Stanford, the one-time billionaire, was convicted in March on 13 of 14 fraud-related counts. In June, Hittner sentenced Stanford to 110 years in prison. He is serving his sentence in a prison in Central Florida.

Two other indicted ex-executives – Gilbert Lopez, the ex-chief accounting officer, and Mark Kuhrt, the ex-global controller – are set for trial later this month. A former Antiguan financial regulator was also indicted and awaits extradition to the U.S.

A TIMELY CALL FOR HARMONY AMONG VICTIMS AND THEIR ATTORNEYS

Dear Stanford Investors and Attorneys of Stanford Investors:

We at KLS, and the managers of this blog “Stanford’s Forgotten Victims”, are very pleased that we have been able to overcome the sovereign immunity hurdle, and the U.S. Government’s motion to dismiss in this case.

We recognize, however, that this is an opportunity not only for KLS and its clients but for all investors who have filed, or attempted to file claims with the SEC. As you know, we have filed our case as a class action. As such any victory we obtain is a victory for all class members (all those who have filed claims with the SEC).

Along with KLS, there were many other attorneys who did attempt to file claims with the SEC on behalf of their clients. Regardless of the rancor that may have existed between attorneys and investors in the past, now is not the time to dwell on conflict, but to breed the kind of bond that can assist this case in going forward with the kind of strength we want to engender, with seriousness, collegiality, fairness, and propriety as our guide.

Investor recovery should be first and foremost for all investors and all attorneys of investors. As such, we would like to encourage all investors (who have filed with the SEC in any manner whatsoever) or their attorneys who have done so, to contact us so that we can determine a common strategy forward to benefit all investors.

We thank you all for your support, and your criticism. After all, we believe, all the feedback we have received has assisted us, and culminated in the formulation of our initial victory in this case!

Best wishes,
Gaytri Kachroo

 
Dr. Gaytri D. Kachroo
PRINCIPAL
KLS-Kachroo Legal Services, P.C.
225R Concord Ave.
Cambridge, MA 02138
Direct: 1-617-864-0755
Facsimile: 1-617-864-1125
http://www.kachroolegal.com

Pendergest-Holt sentence due Thursday for Stanford crime

by PATSY R. BRUMFIELD/Daily Journal

HOUSTON, Texas – Baldwyn native Laura Pendergest-Holt is set for sentencing Thursday for her attempts to obstruct the investigation of a Ponzi scheme at Stanford International Bank Ltd. Holt was chief investment officer at Stanford Financial Group based out of Memphis, with offices in Tupelo, when the entire Stanford financial empire came crashing down in 2009 under the weight of a federal investigation. Her boss, R. Allen Stanford, was convicted last March of masterminding the scheme, which cost worldwide investors $7.2 billion. He is serving a 110-year prison sentence. In a deal with the government, Holt pleaded guilty June 21 to one count and faces up to five years in prison. Her deal recommends three years. She’ll appear before District Judge David Hittner for a 9:45 a.m. hearing in Houston, where Stanford built his empire. Co-defendants Mark Kuhrt and Gilbert Lopez, former Stanford executives, are set for trial there starting Sept. 28. Read more: djournal.com – Update Pendergest Holt sentence due Thursday for Stanford crime

Stanford Victims in Antigua Praise Latest Development

Source: Caribarena

Antigua St. John’s – Stanford victims in Antigua are calling the historic victory over the United States Securities Exchange Commission (SEC) a landmark achievement and “the best news the victims have had in three-and-a-half years.”

On Friday, a US Court ruled that the SEC must defend a negligence claim contending that the Commission had failed to act appropriately after concluding at least four times before 2008 that R. Allen Stanford was indeed operating a Ponzi scheme.

“We have made legal history with this latest ruling and I encourage all Stanford victims to go to http://stanfordsforgottenvictims.blogspot.com/ to read how they can join this lawsuit and for the first time have a chance of recovering their stolen money,” said spokesperson for the Stanford International Victims Group (SIVG) Kate Freeman.

She added that the achievement of attorney Gaytrie Kachroo is the first for any lawyer in finding a legal solution to the Discretionary Rule that has long protected the SEC from legal sanction when it failed to act accordingly.

“There are thousands of Stanford Victims that need to be made aware of what we have done here and also be given the chance of joining Kachroo Legal Services on this journey,” Freeman said.

The victims now have a clear passage to continue forward with the claim against SEC examiners, according to the ruling.

The lawsuit being carried by Kachroo claims that the SEC had a “nondiscretionary duty” to report Stanford to the Securities Investor Protection Corp. (SIPC) in the USA. The landmark judgment was filed on September 7.

“Gaytri Kachroo was originally contacted by me and another victim and asked to work on the behalf of the Stanford International Victims group to sue the American Government and the SEC. All other lawyers said this could not be done due to the “Discretionary Rule” that protects the US government and its departments,” Freeman said.

The attorney is reported as saying on Friday in a http://www.bloomberg.com report that the judge’s decision was the first to overcome the SEC’s “sovereign immunity.”

“The ruling handed down… is a bold statement and a warning to the government: if you fail to carry out your statutory obligations to protect the public against wrongdoing with massive repercussions to the investing public, you will be held liable,” Kachroo said in a statement.

According to the judgment, “…The Securities and Exchange Commission was obligated to report Stanford’s company to the Securities Investor Protection Corp. This obligation to report was not discretionary because the controlling statute mandates that the report be made.”

The SEC may use the next stage of the litigation to raise the argument that it had not concluded before 2009 that Stanford was running a Ponzi scheme, despite the plaintiff’s claims.

It is also being reported that the SEC shied away from investigating the case because of the clear complexities involved, as they reportedly preferred to investigate more slam-dunk cases due to work evaluation purposes.

The case is Zelaya v. United States, 11-cv-62644, U.S. District Court, Southern District of Florida (Miami).

KLS – Stanford Update #17

HISTORIC VICTORY FOR STANFORD VICTIMS IN ZELAYA v. UNITED STATES

Miami, Florida – September 7, 2012

Federal District Court Judge Robert N. Scola, Jr. handed down an historic opinion against the U.S. Government today, holding the Securities and Exchange Commission potentially liable for billions of dollars for not notifying the Securities Investor Protection Corporation when it had information about Allen Stanford’s Ponzi scheme. In the wake of the Madoff and Stanford Ponzi schemes and the dozens of lawsuits filed against the Government for the SEC’s failure to protect the public, today marks the first time that a lawsuit survived the Government’s motion to dismiss.

The case is being fought by Dr. Gaytri Kachroo and her law firm, Kachroo Legal Services, P.C., on behalf of thousands of Stanford victims. KLS filed a class action against the government, alleging that the SEC knew Stanford was operating a multi-billion dollar Ponzi scheme and “sat and watched the scheme grow for years, as it ballooned into a $7 billion enterprise, second only to Bernard Madoff as the largest Ponzi scheme in history.”

In an unprecedented decision denying the Government’s efforts to dismiss the lawsuit, the Court held today that the SEC can be held liable for failing to act appropriately when put on notice that an investment advisor is operating a Ponzi scheme. To achieve this important and unprecedented goal on behalf of its clients, KLS crafted an argument not raised in any of the prior complaints against the government: that the SEC violated a statutory duty to notify SIPC that an investment advisor was in or approaching financial difficulty.

Dr. Gaytri Kachroo is proud of her firm’s achievement: “This decision reaffirms the SEC’s fundamental mission. For decades, the SEC has relied on sovereign immunity to avoid the consequences of its inaction in the face of Ponzi schemes. The ruling handed down today is a bold statement and a warning to the Government: If you fail to carry out your statutory obligations to protect the public against wrong doing with massive repercussions to the investing public, you will be held liable.”

Victims of the Stanford Ponzi scheme have not only lost billions of dollars as a result of the SEC’s failure to put an end to the scheme, but they have also lost hope that they will see any recovery, as the SEC- appointed receiver has recovered only pennies on the dollar at this point, and has not made any distribution to victims. “We are in an unprecedented position, and are thrilled to succeed in this first major hurdle in the case. Today, our small firm accomplished what thousands of lawyers and consultants employed by the Receiver could not do in over three years: restore hope for the victims of Stanford’s Ponzi scheme.”

Kachroo Legal Services represents individuals and corporate entities in business and securities litigation, companies and their Boards in ethics and audit compliance, funds and investors in their government and SEC relations, and in general corporate law and general counsel services for companies both domestic and international. Dr. Gaytri Kachroo is the attorney for Madoff whistleblower Harry Markopolos.