In what continues to be a heated battle between the Stanford Financial Group Receiver Ralph Janvey and the Securities and Exchange Commission, both sides have filed motions regarding the freeze of investors’ assets. Janvey would like U.S. District Judge David Godbey to extend the hold on investors’ interest payments and principal currently in separate banks or with clearing brokers. The SEC, on the other hand, is again contending that the freeze on investors’ principal is beyond the authority of the receivership.
Janvey’s argument basically extends so far as to say that the court would have to admit its decisions were in error in order to side with the SEC. The SEC, to the contrary, says that holding the principal of investors who were able to retrieve cash before the Feb. 17 freeze of Stanford assets is unauthorized and in violation of existing case law.
To boil it down, the SEC is attempting to limit Janvey’s authority to go after innocent investors for the benefit of the entire estate. It even goes to say that the receiver is “attempting to make an end run around the law having the most natural application to the facts of this case,” and that the receiver, “however, does not ordinarily stand in the shoes of the Commission.” The SEC has made it increasingly clear that they do not approve of Janvey’s actions and intend to pursue limiting them through their interests with the court to “protect investors.” To read the most recent filings from Janvey click here. To read the SEC’s response, click here.—Olivia Watkins
