From five years of the Allen Stanford´s Ponzi scheme, the second largest after Madoff, swindled investors will only recover one per cent of the five billion lost and given the international jurisdictions which complicate the case, at least five more years will take to end the process.
Interviewed by telephone from San Antonio, Texas, Edward Snyder, one of the leading lawyers in the case, explained that it is a difficult case; time runs without expedite progress in the distribution of the amounts claimed since the process began in February 2009.
“For many defrauded investors to recover any money is new money for them,” he said.
He said he is also looking for the government to act against banks that participated in the Stanford scam indirectly as with JP Morgan in Madoff case.
He recalled that the main bank, used to transfer money from Mexican investors, was the Toronto Dominion Bank, the second largest bank in Canada.
The partner at Castillo Snyder PC, one of the four firms in Texas and other one in New York working on lawsuits for defrauded investors, said that after the battle of the joint liquidators for the control of the assets, the money was divided in accounts in England and Switzerland and bank accounts, property, banks and aircrafts in the United States.
” British funds were recovered last year and in the U.S. $ 55 billion distribution is about to conclude, which is equivalent to one per cent of the total loss,” in addition the Antiguan Liquidator is about to begin the process of distributing 50 billion dollars, derived from British accounts, corresponding to another one per cent of the loss.
On the Swiss side, where the authorities conduct their own research under its jurisdiction, they control of over 200 million dollars being fought by the receiver and the U.S. government. “The two are negotiating with Switzerland, but the government will not release the money until Stanford appeal is resolved,” and explained that although he is already in prison, Stanford appealed his 110 year sentence since 2012.
Allen Stanford was convicted of conspiracy and fraud.
Stanford Financial Group and Stanford operated Stanford International Bank (SIB) in the tax haven of Antigua island with 35 offices in 29 U.S. cities, 4 in Mexico, three in Venezuela and others in Colombia, Peru, Ecuador, Switzerland and St. Croix among others.
” Ultimately the recovery will be of 10 cents on the dollar resulting from the remaining assets of Stanford, that is, adding the money, property and accounts in England and Switzerland,” Snyder said.
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