Stanford 'Wife' Should Face Contempt Charge: Lawyer

One of Allen Stanford's mistresses—whom the accused fraudster euphemistically refers to as "outside wives"—should be held in contempt of court, according to the court-appointed Receiver in the case.

Allen Stanford
Allen Stanford

The request comes after Rebecca Reeves-Stanford allegedly sold a Florida mansion paid for by Allen Stanford, then quickly moved the proceeds offshore in violation of a court-imposed asset freeze.

Ralph Janvey, appointed by a federal judge in February to gather all assets traceable to the alleged Stanford fraud, says in a court filing that Reeves-Stanford sold the mansion on Key Biscayne for $3 million on May 8.

This was even though she allegedly knew the property was part of a broad asset freeze imposed in February after the Securities and Exchange Commission accused Allen Stanford and his companies of running an $8 billion Ponzi scheme.

The filing also alleges two of Reeves-Stanford's attorneys helped hide the sale. After the sale, the filing says, Reeves-Stanford transferred the proceeds to the Cook Islands and New Zealand. But Janvey says the mansion was paid for by Allen Stanford, and the proceeds belong to Stanford investors.

The filing says Rebecca Reeves-Stanford and Allen Stanford's relationship goes back "nearly two decades." They were never married (Stanford and his wife of 35 years are separated), but Reeves-Stanford nonetheless continues to use Stanford's last name, and the couple has two children. Stanford maintains a similar relationship with several other women.

The filing says Stanford provided Reeves-Stanford with "large sums of money and substantial gifts" throughout their relationship, and that Reeves-Stanford has no marketable skills or any source of funds other than Allen Stanford.

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  • Reeves-Stanford's current attorney, who is not named in the contempt motion, was not immediately available for comment.