US Receiver Goes After Ex Stanford Workers
August 5, 2010 Leave a comment
Ralph Janvey, the US receiver seeking to recover assets belonging to fraud-accused Allen Stanford and his companies, is now targeting the employees of the former billionaire.
He’s suing them to get back the money they received after investing in the allegedly fraudulent certificates of deposits (CDs) from the Stanford International Bank Limited (SIBL) that are at the centre of Stanford’s fraud case. Janvey has identified 77 employees who received individual sums ranging from to just over US$52,358 to US$3 million.
“Collectively, these 77 former employee investors received over US$27 million in CD proceeds, at least,” Janvey wrote in his complaint filed last month, insisting that what they got was “stolen money”.
“The CD proceeds the former employee investors received from SIBL were not, in fact, their actual principal or interest earned on the funds they invested. Instead, the money used to make those payments came directly from the sale of SIBL CDs to other investors. When Stanford paid CD Proceeds to the Former Employee Investors, he did no more than take money out of other investors’ pockets and put it into the hands of the former employee investors,” he added.
Janvey’s lawyer has also written to the individual employees, demanding the money back.
The Securities and Exchange Commission (SEC) in the US claims that Stanford sold US$8 billion in certificates of deposit (CDs), through his SIBL, to clients all over the world, using false promises of high interest rates.
It has alleged that what Stanford actually operated was a Ponzi scheme in which investors are paid, not by any return on their investment, but with the money paid in by investors who come after.