Stanford examiner urges release of funds

HOUSTON – The court-appointed examiner for customers of accused swindler Allen Stanford called for the release of more accounts suspected of holding funds related to an US$8,5 billion fraud.

‘The law simply does not support a continuing freeze of customer accounts that belong to third parties who have done nothing wrong,’ John Little, the examiner said in his first status report filed in federal court in Dallas late on Thursday.
Allen Stanford and two executives that helped run his financial empire are accused by the US Securities and Exchange Commission of an fraud involving certificates of deposit (CDs) issued by Stanford International Bank in Antigua.
Ralph Janvey, the court-appointed receiver charged with preserving Stanford assets for the firm’s customers, was granted broad authority by US District Judge David Godbey in February to freeze accounts holding funds believed to be linked to the alleged fraud.
So far, the receiver, with court approval, has released 92 per cent of Stanford customer brokerage accounts that were held at Pershing and JPMorgan and contained US$4,6 billion in assets.
But more than 1 000 accounts are still frozen, leaving some customers with no funds to pay for necessities like medical bills, the examiner wrote.
A spokesperson for Janvey was not immediately available for comment. But also on Thursday, US District Judge Godbey granted Janvey’s motion to release accounts that received only ‘de minimis’ proceeds from Stanford International Bank Ltd.
Janvey and his lawyers argued in prior court papers that that would speed up the process.
Little also said in the report that Janvey has no right to pursue ‘claw back’ claims from customers who redeemed funds from certain accounts in the year before his appointment on Feb. 17. -Nampa-Reuters