News Releases

Stanford Receiver Wins $50 Million Jury Verdict in First Breach of Fiduciary Duty Case Against Stanford Insider

DALLAS, October 7, 2015 - Baker Botts L.L.P., a leading international law firm, announced today that on October 2, 2015, a Dallas federal trial jury found former Stanford Financial Group Treasury Manager Patricia Maldonado liable for breach of fiduciary duty. From 2000 to 2009, Maldonado was the Treasury Manager for the Stanford Financial Group. The Stanford Receiver, Ralph S. Janvey, sued Maldonado, alleging that she owed fiduciary duties to Stanford International Bank, Ltd. (“SIBL”) in her role as Treasury Manager and that she failed to comply with those fiduciary duties in connection with numerous improper transfers from SIBL’s customer deposit accounts, including transfers of more than $200 million to fund a secret Swiss bank account that Allen Stanford and James Davis ultimately used to pay bribes to auditors and regulators. 

After deliberating for less than three hours, the seven-member jury found that Maldonado owed fiduciary duties to SIBL and breached those duties. The jury also found that Maldonado was not entitled to the protection of the business judgment rule. Finally, the jury concluded that Maldonado’s breaches of duty caused $50 million in damages to SIBL. This was the Receiver’s first civil trial for breach of fiduciary duty arising from the Stanford Ponzi scheme.

The Baker Botts trial team comprised:

Scott Powers (Partner, Austin); Ryan Bangert (Partner, Dallas); Stephanie Cagniart (Associate, Austin); Maddy Dwertman (Associate, Austin); Ari Cuenin (Associate, Dallas); Ellen Reeder (Paralegal, Austin); Elaina Stephenson (Paralegal Clerk, Austin).

Partner, Kevin Sadler (Palo Alto) serves as lead counsel to the Receiver.


 

ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm of approximately 700 lawyers practicing throughout a network of 13 offices around the globe. Based on our experience and knowledge of our clients' industries, we are recognized as a leading firm in the energy, technology, and life sciences sectors. Since 1840, we have provided creative and effective legal solutions for our clients while demonstrating an unrelenting commitment to excellence. For more information, please visit bakerbotts.com.

Practices

Related Professionals