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Allen Stanford's Ponzi system recycling tops $ 1 billion



(Reuters) – A court-appointed recipient has received back more than $ 1 billion for the victims of Texas financier Allen Stanford's Ponzi scheme, the largest with amounts other than Bernard Madoff's fraud, the recipient's lawyers said on Monday.

The threshold was crossed when Ralph Janvey, recipient of Stanford Financial Group, received $ 65 million from a June 2016 settlement with insurers including Lloyd & # 39 ;s of London, which won final court approval in January after years of litigation.

Mr. Janvey expects to distribute money from the deal during the first quarter of 2022. As of April 29, he had received court approval to distribute approximately $ 550 million and had distributed $ 443 million.

Once considered a billionaire but later declared poor, Mr. Stanford, 71

, is serving a 110-year prison sentence after his 2012 conviction for operating a $ 7.2 billion Ponzi scheme affecting about 18,000 former investors. Stanford International Bank and used investor money to make risky investments and finance a lavish lifestyle.

The fraud lasted for about two decades and was discovered in February 2009.

"When the receipt started, the recipient found only $ 63 million in a bank that would have more than $ 7 billion," said Kevin Sadler, a Baker Botts partner who represents Janvey, in an interview. "It has taken more than 12 years, but reaching $ 1 billion is a significant achievement."

More recoveries are possible.

Recovery efforts from Madoff's Ponzi scheme have repaid more than $ 18 billion to the victims. [19659002] Mr. Madoff died in April at the age of 82 while serving 150 years in prison. His fraud was revealed in December 2008.


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