Friday, April 17, 2009

Stanford Update

I hate to leave the blog without any new material for so long, so a quick update on the Stanford issue. First of all, you can get exceptional extended coverage of the case at Venepirámides (in Spanish) or the Stanford Watch at the Houston Chronicle. Someone also set up a twitter. (Don’t ask me to explain twitter…I still don’t get the blogging deal).

Summing up. In Antigua the courts authorized that SIB go into liquidation and Vantis the receiver becomes Vantis the liquidator. Here’s a good link from the BBC. You can hear Vantis on Radio HERE. Scroll to minute 32 which is where the Stanford part starts.

The liquidator also had bad news for SIB depositors, confirming that SIB was in fact very much akin to a ponzi scheme. Since SIB is in liquidation, depositors have become creditors. No distributions are expected any time soon and the bank could take as long as 5 years to “wind up”. This is unfortunate and probably reflects that liquid assets have been scarcer than I believed and perhaps the only Tier II assets are those in the CS account that was frozen by the SEC. (see Begun,,,,).

It is also unfortunate because it hinders and delays other legal action that depositors could take against third parties. How can you sue for losses, until you know how much those losses actually are? (You can...but this is a bother) A quick wind up of SIB would have been ideal.

In the meantime, the Houston receiver Ralph Janvey, had his motions to control assets in Antigua quashed, but he still managed to sue 66 US advisors for over $40 million in commissions from CD sales. Normally I would link the complaint, but it lists these advisors’ home addresses and that really wasn’t a good idea if you ask me.

Also the first interest “clawback” was achieved as an investor accepted to put aside some $15,000 he had received in SIB CD interest in the past, in exchange for getting his brokerage account unfrozen. LINK

Oustide the US, the Panamanian Authorities were accepting bids for the local Stanford Bank. LINK. The results of the bids weren’t to be disclosed immediately. LINK.
The Venezuelan bank will go to auction again, after the first bidding process didn’t yield a result acceptable to the government. This time the government will not get a “premium” for the bank, all the money will go to recapitalizing the bank itself (so the investor is just paying himself and absorbing losses). LINK.
And count Mexican soap opera actress Laura Zapata among Stanford’s victims. LINK LINK.
Yes, that is her picture at the top of the post.

As for as the criminal case, Allen Stanford now has a lawyer, but he doesn’t expect charges to be brought for a couple of weeks. Oh…and the mother or his girlfriend defends his innocence. Shocking! LINK.

More interesting, however, is that David Finn, who is CFO Jim Davis’ attorney has a blog. Not really much case discussion, though…except for one little headline:
“My baloney has a first’s A-L-L-E-N". LINK
Davis and Stanford were roomates at Baylor University back in the '70s.

I think this is the END of a beautiful friendship, Louis...I mean Allen.

Update: BW reports on SIB's accounting "multiplicity".

1 comment:

  1. When you read all of these VENEZUELANS stories one might think that they are TRUE. I don't think so. I agree perhaps a lot of VENEZUELANS maybe lost some money. Don't forget, HIGH RISK HIGH RETURN, LOW RISK LOW RETURN. FACT, all VENEZUELANS who had monies deposited in the bank were non declared funds to the local VENEZUELAN tax and financial authorities. Were these bonafide inverstors or just GREEDY INDIVIDUALS??

    QUESTIONS? Who has the answers???

    Did Alex Dalmady really discover the alleged financial scandal? I don't think so. During December 2008 were there a number of VENEUELANS and/or ARGENTINE SENIOR FINANCIAL OFFICERS laid off by the financial group??? Did some of these laid off officers lived or live in South Florida perhaps WESTONZUELA??? Did the former first appointed HEAD of the STANFORD VENEZUELAN GROUP EMPIRE lived or had a residence in WESTONZUELA, FL.??? Buy the way, I think an empire he created during an approximate 14 year span with the finacial group.
    Was Stanford Bank Venezuela taken over by the VENEZUELAN government and subsequently sold for US 111 million dollars? Was the Stanford Bank Venezuela purchased by a local VENEZUELAN banking group related directly or indirectly to the CHAVEZ circle of trusted friends???
    Who has the 111 US MILLION DOLLARS from the sale? One thing is for sure not Allen Stanford, he's locked up in a prison in Texas.

    Yes, I agree with Alex; If it walk's, if it quack's, IT MUST BE A DUCK!!

    However, Alex, did you actually see the DUCK quack and walk with your own eyes and made your own personal judgement? Or were you fed data and info. from third parties??

    Alex, I hope and trust you follow the alleged fraudulent charges against Robert Allen Stanford until Jan.-Feb. 2011.
    At that time you will see a worthless, penniless, aged, destroyed, human being walk out from the court perhaps with a five year probation for being NEGLIGENT in his company's financial affairs. That's all.