Antigua Liquidators Win Fight over Stanford Assets

Allen%20Stnaford

Allen Stanford’s liquidators from Antigua were awarded control of $196 million in U.K. assets seized in a fraud probe in a London court battle with U.S. receivers. Liquidators appointed in the U.S. and Antigua had failed to agree on who should have control of the funds held by Antigua-based Stanford International Bank Ltd. in the U.K. Stanford was indicted last month on US charges he swindled investors out of more than $7 billion [also see “Pirate of the Caribbean” or “Banks: the New Plantation Houses”]. Justice Kim Lewison in a ruling Friday awarded the funds to the Antiguan liquidators who were appointed to oversee the Stanford International Bank assets, saying “they should be permitted to remit those assets (or any realization of them) to Antigua.”

Stanford, 59, has been in custody since June 18, when he was arrested after a Houston grand jury indicted him for allegedly running a Ponzi scheme involving certificates of deposit sold by Stanford International Bank. The liquidators are also clashing in federal court in Texas over which has the authority to recover Stanford’s global assets. At a hearing last month, lawyers for the Antiguan liquidators argued that since Stanford International Bank was established and incorporated on the island, its assets should be liquidated there. The U.S. liquidators told the court that Stanford’s global operations were based in Houston and the U.S. receivers were responsible for distributing the bulk of his assets to creditors.

Nigel Hamilton-Smith, the joint liquidator of Stanford International Bank, said he will work with the U.S. Securities and Exchange Commission and the U.K. Serious Fraud Office to arrange the release of the frozen funds. Other proceedings continue in the U.S., Switzerland and Canada.

For full article by James Lumley and Laurel Brubaker Calkins (in English), see http://www.caribbeannetnews.com/news-17463–4-4–.html

Photo of Stanford in front of his restaurant, The Sticky Wicket, from http://dealbreaker.com/2009/06/allen-stanford-looks-to-the-se.php

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