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Stanford receiver calls out Libya and rich ballplayers

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The court-appointed receiver, defying the wishes of securities regulators, is going ahead with a lawsuit seeking to recoup $925 million from investors and former employees of indicted Ponzi schemer R. Allen Stanford.

The Securities and Exchange Commission went to court last week seeking to block the receiver from “clawing back” early redemptions paid to “innocent investors.” The SEC said it had no problem with the receiver targeting brokers who benefited from selling some $7 billion of Stanford’s bogus certificates of deposit.

Regulators claim it makes no sense to go after investors who had no knowledge of the alleged fraud and were simply lucky enough to cash-in some of the CDs before the long-running scam was exposed in February. I agree with the SEC’s desire not to victimize Stanford investors twice.

But Ralph Janvey, the Dallas attorney serving as the recevier for what little is left of Stanford’s fallen financial empire, didn’t wait for the federal judge to issue a ruling on the SEC’s request.

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