It may take seven to 12 years to finish repaying victims of the alleged $8 billion fraud masterminded by Allen Stanford, an attorney told Bloomberg News. Michael Goldberg, a Miami attorney who has handled 30 Ponzi scheme cases says the sheer complexity and scope of the case will make it difficult for the receiver to untangle Stanford’s finances. Ralph Janvey, the attorney who has been appointed Stanford’s receiver, will likely use “clawback litigation” to force Stanford investors who cashed out early to return previous withdraws, along with analyzing the firm’s records and interviewing employees. Read the Bloomberg story here. Meanwhile, a CNBC interview Stanford did back in the fall has resurfaced on YouTube. Stanford talks about the fun of being a billionaire, and how his company avoided the subprime loan mess. Watch the clip here.
Attorney: Repaying Stanford victims may take a decade
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