U.S. News

Allen Stanford Investors Settling 'Clawback' Claims

Allen Stanford

The court-appointed attorney who is rounding up assets in the alleged Allen Stanford Ponzi scheme says he has reached settlements with more than 30 investors over so-called "clawback" claims.

Ralph Janvey had sued nearly 200 investors who managed to cash out of their accounts before the Stanford empire collapsed. Janvey argued those proceeds — more than $93 million — belonged to earlier investors in the scheme, and should be distributed equally among all of Stanford's 28,000 investors.

Now, Janvey says he has finalized out-of-court settlements totaling more than $1.8 million, with another $1 million worth of settlements in the works.

In a statement late Friday, Janvey said the funds "will help provide compensation to investors who suffered significant or total losses" on their Stanford investments.

The Securities and Exchange Commission sued Stanford and his companies last February, alleging an $8 billion Ponzi scheme involving fraudulent certificates of deposit. The life's savings of thousands of investors around the world have been in limbo ever since.

Stanford remains jailed without bail in Houston, awaiting trial early next year on 21 criminal counts.