Stanford Ponzi case pits SEC against court-appointed receiver

Fairness of forcing ‘innocent investors’ to return CD principal payments is questioned

Aug 11, 2009 @ 1:05 pm

By Sara Hansard

The Securities and Exchange Commission has taken the unusual step of opposing what a court-appointed receiver is doing in the massive Ponzi case that involves companies owned by Robert Allen Stanford.

According to briefs and motions filed yesterday evening and released today, the SEC opposed actions taken by Stanford receiver Ralph Janvey to attempt to recover principal and interest from hundreds of Stanford victims who received payments of certificate of deposit principal from Stanford International Bank Ltd., a company in Antigua, West Indies, that was controlled by Mr. Stanford.

“The receiver’s claim to recover principal lack statutory and case law support, and it would be inequitable to require the innocent investors to repay these amounts,” the SEC said in briefs filed with the 5th U.S. Circuit Court of Appeals in New Orleans.

Thousands of other investors, including those outside the court’s jurisdiction, have received principal payments from Stanford International Bank, the SEC said in a release.

“It would be unfair to make this small subset of admittedly innocent investors return the funds they invested, or even litigate, while thousands of similarly situated investors are not pursued,” the SEC said.

Calls to Mr. Janvey, who is also a partner in Krage & Janvey LLP, a law firm based in Dallas, were not returned.


What do you think?

View comments

Recommended for you

Featured video


How to build a more efficient practice

Efficiency is the key to real growth for advisers. But achieving efficiency can be a real challenge. Carly de Diego of AdvisorEngine offers some tips for successfully building a more efficient practice.

Video Spotlight

We started as a boutique firm with huge ambitions. Schwab was a perfect fit.

Sponsored by Schwab Advisor Services

Recommended Video

Keys to a successful deal

Latest news & opinion

Robert Moore, Cetera CEO, stepping down for health reasons

Chairman Ben Brigeman will serve as interim chief executive while a search for a permanent CEO is conducted.

Cetera, other broker-dealers refuse to sign Ohio National contracts

Advisers wonder what the lack of a formal brokerage agreement means from a regulatory standpoint.

10 millennials making their mark in Washington — and beyond

These next-generation leaders are raising their voices and gaining influence over financial advice regulation and legislation.

Warburg Pincus among private equity managers interested in acquiring Kestra Financial

Sources say Kestra is being valued at between $600 million and $800 million, about eight to 10 times EBITDA.

10 highest paid professions in America today

These are the top-paying jobs in the U.S., according to Glassdoor.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print