Home' Trinidad and Tobago Guardian : September 5th 2013 Contents A25
Thursday, September 5, 2013 www.guardian.co.tt Guardian
HOUSTON---Investors in a $7 bil-
lion Ponzi scheme orchestrated by
convicted ex-Texas tycoon R Allen
Stanford have begun getting back
some of what they lost after a
recovery process that has dragged
on for more than four and a half
However, the amounts being
returned to many who lost their life
savings ultimately will be only a
pittance of their investments---about
one per cent of what they put in.
The largest claim being paid out in
the first distribution of funds to
victims of Stanford s scheme is
about $50,000, while the smallest
is $2.81. Many of the claims seemed
to be in the range of $1,000 to
$4,000, according to court docu-
ments filed late last month.
British retiree Kate Freeman, who
lost $820,000 in the scheme, said
she and other investors continue to
be frustrated by the slowness of the
"After nearly five years, it s just
the biggest disappointment---isn t
it?---that this is all we re getting,"
Freeman, in her late 50s, said Tues-
day in a telephone interview from
her home in Antigua.
David Arlington, an attorney for
Ralph Janvey, the US court-appoint-
ed receiver who is making the initial
distribution, said he expects that
most of this first allotment of
funds---about $1 million---will be
disbursed within the next few
"Obviously it s a huge milestone
in this receivership to be able to
begin making payments to investors.
We re pleased with the fact that we
are doing that," he said.
Prosecutors said Stanford per-
suaded investors to buy certificates
of deposit, or CDs, from his bank
on the Caribbean island nation of
Antigua then used the money to
fund a string of failed businesses,
bribe regulators and pay for his lav-
In a Ponzi scheme, money from
new investors is used to pay old
Stanford, 63, was convicted last
year on 13 fraud-related counts and
sentenced to 110 years in prison.
Stanford s financial empire once
spanned from the US to Latin
America and the Caribbean. After
its collapse, a US federal judge in
Dallas and an Antiguan court both
appointed people to try to recover
The US Justice Department also
undertook its own effort.
Janvey s initial distribution of
funds is part of $55 million that he
got approval in May to disburse.
"He s got $55 million to pay out.
If he releases them in small batches
like this, it s going to take forever.
It just seems so badly organised,"
Arlington said the distributions
to investors are being made as
quickly as possible but are depend-
ent on how soon investors return
paperwork needed to finalise their
"We re pleased with the pace we
expect to achieve in sending these
payments out," he said.
Janvey has said additional money
that has already been collected or
will be obtained through lawsuits
or other efforts will also be distrib-
uted at some point. Angela Shaw,
a Dallas-area woman who founded
the Stanford Victims Coalition after
three generations of her family lost
$4.5 million in the fraud, remains
critical of how long it s taken to get
money to investors and of the mil-
lions of dollars the receiver has spent
on various fees.
"Any amount (for investors) is
welcome, but it s such a minuscule
amount that it s beyond insulting.
It s really sad," she said.
While Janvey has begun distrib-
uting funds, liquidators in Antigua
announced Tuesday they plan to
make their initial distribution by
late November or early December.
Marcus Wide, with the Stanford
International Bank Joint Liquidators,
said because of pending lawsuits
and sales of property once owned
by Stanford, he could not say how
much money the liquidators have
collected for investors or would be
Janvey and the Antiguan liquida-
tors had been at odds as they fought
over many of the same assets, but
they agreed earlier this year to com-
bine their efforts. (AP)
Investors in $7b
start getting payouts
Reserve Bank of India's (RBI) newly appointed governor Raghuram
Rajan, left is greeted by outgoing governor Duvvuri Subbarao after
taking charge, at the RBI headquarters in Mumbai, India. Rajan took
over as the country's central bank governor yesterday. AP PHOTO
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