Stanford case latest
Published:Tuesday | July 21, 2009 | 12:21 PM
The United States Securities and Exchange Commission has asked a federal judge to prevent the court-appointed receiver from suing investors in the Allen Stanford fraud case.
The investors could be sued for proceeds they obtained in the US$7 billion Ponzi scheme allegedly carried out by Texas billionaire Sir Allen Stanford.
But the Commission’s lawyer David Reece, said the commission is not aware of any compelling reason for the receiver, Ralph Janvey, to pursue Stanford investors.
He said the request of the US Securities and Exchange Commission to strip Janvey of his powers stems from his plan to file claims against innocent investors on or before August 3.
US District judge David Godbey has ordered the release of most of the frozen accounts on that date.
Sir Allen is facing criminal and civil charges for the alleged massive fraud at his Antigua-based Stanford International Bank.