A federal judge in Dallas has approved a controversial plan to claw back millions of dollars from some investors in Allen Stanford's $7 billion Ponzi scheme. The investors — some 800 in all — withdrew more money than they put into their Stanford accounts.
They argued that their gains were legitimate, but court-appointed receiver Ralph Janvey, who is rounding up assets for all of Stanford's approximately 28,000 victims, argued the profits were fictitious and should be returned. (Read More: Allen Stanford: Descent from Billionaire to Inmate # 35017-183)
In a 32-page ruling, U.S. District Judge David Godbey agreed with Janvey, who now stands to collect some $220 million from the so-called "net winners" to redistribute to all of the victims.
"This decision represents an important milestone in the very long and difficult process of unwinding the massive Stanford Ponzi scheme," Janvey said in a statement.