Opinion

Felix Salmon

Stanford’s receiver war

By Felix Salmon
April 6, 2009

Alex Dalmady, who first revealed to the public that Stanford International Bank was a Ponzi scheme, has a very handy post up about what he’s calling the “receiver war” between Antigua and the US.

While most of the press coverage of the Stanford case has concentrated on the goings-on in the US, the fact remains that Stanford International Bank is an Antiguan entity, and the Antiguan authorities and receivers therefore have most of the real ability to get things done. It’s improbable that Stanford himself is going to be tried in Antigua: when the criminal complaint finally comes down, he will be arrested and tried in the US. But if Stanford’s depositors (including, it is rumored, Libya) are looking for money rather than justice, they should be looking to Antigua rather than the US.

And that’s not just because the CDs were in Antigua; it’s also because the IRS is senior to other claimants in the US. Stanford owes the IRS $227 million, which likely represents the bulk of Stanford International Bank’s recoverable funds. If those funds stay in Antigua, they can be distributed to the bank’s depositors. But if they go to the US, then they’re likely to disappear into the maw of the taxman.

Comments
2 comments so far | RSS Comments RSS

Iown SIB CD’s that are frozen until April 27th2009.A NYC judge allowed Peter Madoff to remove $10,000/mo for living expenses from his frozen account.Can this precedent case apply to our accounts as well?Secondly no amount of money has been stated from Allen Stanford’s frozen assets.Why?

Posted by donald forester m.d. | Report as abusive
 

Nigel-Smith of Vantis has never published the amount of money found/frozen in the Allen Stanford accounts.Why?He is alleged to be worth $2.2billion dollars.SEC claims he was given a loan of $1.6billion from the CD’s of SIB.As sole stockholder of SFG,where’s the money.He owns 250 acres in Antigua,1500 acres in St.Croix,who controls them?Stanford has dual citizenship,85-90%of American assets have been released,the CD’s are frozen until Apr.27,then what.As owner of CD’s I am penniless yet Peter Madoff gets $10,000/mo for expenses.

Posted by donald forester M.D. | Report as abusive
 

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/
  •