Receiver Ralph Janvey Settles with Bank Defendants for $1.6 Billion, Bringing Total Stanford Receivership Recoveries to more than $2.7 Billion
On the eve of a long-awaited multi-billion dollar trial over claims that three banks helped Allen Stanford run his 20- year Ponzi scheme that victimized over 18,000 investors, Stanford Receiver Ralph Janvey and the Official Stanford Investors Committee (“OSIC”), reached settlements totaling $1.345 billion with the remaining defendants in the case.
Last month, the Receiver and OSIC agreed to settle with two defendants—Trustmark National Bank ($100 million) and Société Générale Private Banking (Suisse) S.A. ($157 million). On Friday, February 24, the Receiver and OSIC agreed to settle with defendants Toronto Dominion Bank ($1.205 billion), Independent Bank/Bank of Houston ($100 million), and HSBC Bank, plc ($40 million).
Together, the five settlements total more than $1.6 billion.
The Receiver and OSIC will be working to formally document the settlement agreements in the coming days and then will seek approval for the settlements from the Receivership Court, the Honorable David C. Godbey, Chief Judge of the United States District Court for the Northern District of Texas.
Once approved by the Receivership Court in Dallas, the recovery from these five settlements will add to the over $1.1 billion the Receiver has already recovered through his previous litigation and other work for the benefit of Stanford Investors.
“This is an extraordinary result for the victims of the Stanford fraud. Given all the challenges faced by the Receivership since 2009, this is nothing short of a monumental recovery,” said partner Kevin Sadler, lead counsel for the Receiver and OSIC. “Over the past fourteen years, the Receiver and his team of professionals has worked tirelessly for the benefit of the Stanford investors. We look forward to obtaining prompt approval of the settlements and distributing these much-needed funds to the Stanford victims.”
Baker Botts has served as lead counsel for the Receiver since 2009 and negotiated the settlements on behalf of the Receiver and OSIC.
The Receiver and OSIC are represented by partners Kevin Sadler, Scott Powers, and Stephanie Cagniart, special counsel David Arlington and Brendan Day, Senior Associates Mary Margaret Steinle and Ariel House, Associates Andrew Swallows and Brad Bowen, and Staff Lawyer Leslie Roussev, with valuable assistance provided by Litigation Specialist Lynne Dodge, Paralegal Raylynn Howell, Paralegal Clerks Rachel Averitt, Ariadna Garza, and Eunice Navarro, and Secretaries Mel De Pagter, Gina Royeca, and Stacey Benson.
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