Dear Stanford Clients:
This update is in response to the questions and concerns of many of our clients regarding the
Receiver’s proposed interim distribution, as well as several other matters.
The Receiver’s Proposed Distribution
You may have received a notice indicating that you must complete a certification form within six weeks. However, the six week time period does not begin until after the Court approves the Receiver’s request to make an interim distribution. As soon as the Court approves the request, then you will have six weeks to complete the certification form. For many of you, we will be completing these requirements on your behalf. We do not anticipate the Court approving the request for several months. Several objections have been filed in opposition to the distribution, and there may be more objections filed within the next few weeks. These objections were filed by various parties, mostly defendants in lawsuits brought by the Receiver, claiming that they should be included in the distribution. It will take several weeks, if not months, for the Court to resolve these objections. We will keep you updated on this process and notify you as soon as the Court enters a ruling on the proposed distribution plan.
The February 14, 2013 Discovery Hearing in the SEC Class Action
We continue to vigorously prosecute the case against the Government for the SEC’s failure to take enforcement action against the Ponzi scheme. As we mentioned in past updates, the Government filed a second motion to dismiss the Complaint, raising new arguments that it had not previously raised. We filed a strong opposition to the motion, and the issues are now fully briefed and awaiting a ruling from the Court. We have also been moving forward with discovery and we filed a motion to compel the Government to disclose more information. The Government filed a motion seeking a stay on discovery until after the Court rules on the motion to dismiss.
The Court set a hearing on these motions on February 14, and we traveled to Miami, Florida last week to attend and argue at the hearing.
We are happy to report that the Court denied the Government’s motion to stay discovery. The Court ruled that the Government will have to begin responding to discovery in this case and cannot completely obstruct the process by staying discovery altogether. The Court also ruled on our motion to compel discovery by compelling the Government to produce certain preliminary information and requiring the Government to produce a witness to testify at a deposition regarding the allegations of our Complaint. We look forward to taking this deposition and will continue to update you regarding the status of this case.
The Antiguan Claim Process
As our SFA clients know, the Antiguan Liquidator set up a claim process and we submitted claims to the Liquidator on behalf of all of our SFA clients. At the time we submitted those claims, the Liquidator had not yet set up a deadline for submission of the claims. However, now the Liquidator has set a March 31, 2013 deadline. We encourage our non-SFA clients to review the procedure for submitting claims and make sure you submit your claims before the deadline. If any of you want to become SFA clients so that we can complete the process on your behalf, please do not hesitate to contact us. More information about the claims’ process requirements can be found at:
As always, if you have any questions or comments, please feel free to contact us.
For a full and open debate on the Stanford Receivership visit: