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Baker Botts Surpasses $1 Billion in Recoveries for Victims in Stanford Ponzi Scheme, Second-Largest Ponzi Scheme in History

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September 20, 2021 – Baker Botts L.L.P. announced today that its client, Ralph Janvey, the receiver of the Stanford Financial Receivership, has now recovered more than $1 billion in his continuing effort to collect assets for the benefit of the victims of the Allen Stanford Ponzi scheme, the second-largest Ponzi scheme in history by dollar amount and the largest by number of victims.  In the twelve years since his appointment, the Receiver’s efforts have been aided by the work of his professional team as well as the work of the Official Stanford Investors Committee and its professionals.

The threshold of $1 billion in recoveries was crossed when the Receiver obtained $65 million due under his settlement agreement with Stanford Financial Group’s insurers.  That agreement, originally reached in 2016, received final approval earlier this year, following review in the Dallas federal district court and appellate review at the United States Court of Appeals for the Fifth Circuit in New Orleans.  The Receiver anticipates that the distribution of the funds from the insurance settlement will occur in the first quarter of 2022.

The insurance settlement supplements numerous other past substantial recoveries by the Receiver, including approximately $200 million from Stanford’s law firms, $130 million from Stanford’s insurance brokers, and $65 million from Stanford employees.

“This is a significant milestone and is the product of a lot of hard work by Mr. Janvey and his team of dedicated professionals,” said partner Kevin Sadler.  “But the work is not done.  We are presently defending two different appeals from a $130-million judgment for the Receiver against Colorado billionaire Gary Magness.  We are also working with the Official Stanford Investors Committee on a multi-billion dollar lawsuit against Stanford’s former bankers.  We will continue to work tirelessly to maximize recoveries for Stanford’s victims.”

In 2012, Stanford was convicted and sentenced to a 110-year prison sentence for orchestrating a $7 billion scheme that ultimately defrauded over 30,000 investors.

Baker Botts has been lead counsel to Mr. Janvey since his appointment as Receiver in February 2009. Baker Botts’ work has been led by Kevin Sadler (partner, Palo Alto) and a team of Baker Botts lawyers and professionals, including Scott Powers (partner, Austin), Evan Young (partner, Austin), David Arlington (special counsel, Austin), Stephanie Cagniart (special counsel, Austin), Brendan Day (special counsel, Austin), and Maddy Dwertman (senior associate, Austin).

 

ABOUT BAKER BOTTS L.L.P.
Baker Botts is an international law firm of more than 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.

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