On March 16, 2017, the Fifth Circuit Court of Appeals issued its mandate in Janvey v. Alguire, Case No. 14-10857, bringing to a close a long-running dispute between the Stanford Receiver and more than 300 former Stanford financial advisers who were trying to compel the Receiver to assert his claims against them in arbitration.
The financial advisers had asserted that the Receiver was bound by Allen Stanford’s agreements with them to arbitrate any disputes arising out of their employment with Stanford. In a per curiam opinion, a panel of the Fifth Circuit unanimously held that the Receiver was not bound to those arbitration agreements because he was bringing his claims on behalf of Stanford International Bank alone, a receivership entity that never had any arbitration agreement with the former Stanford brokers.
The Receiver’s lawsuit seeks to recover more than $215 million in fraudulent transfers made to the former Stanford brokers, all of whom profited from the sale of fraudulent Stanford International Bank CDs. In a concurring opinion, Judge Higginbotham colorfully summarized the Receiver’s lawsuit thusly:………….
To view the full ruling and a copy of the Fifth Circuit’s judgment and opinion, click Here.
For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/