According to a report from Bloomberg News, the U.S. Securities and Exchange Commission would like to prevent Stanford receiver Ralph Janvey from being paid for any work he did to sue innocent investors. Janvey, who has charged more than $27 million in legal fees and expenses, has sued defrauded investors for the principal and interest of their certificates of deposit. The SEC expressly opposed Janvey’s actions and asked the court to strip the receiver of all clawback authority. U.S. District Court Judge David Godbey ruled instead to limit the clawbacks to interest only, an issue that is currently under appeal. To read the full version of this story click here.
Also fueling the Stanford drama is a new push by Janvey for the financial advisers to return any money they made off the CDs. The original lawsuit requesting they return their commissions, was filed in May, but never actually served to the advisers. Instead, Michael Stanley, a Texas attorney who represents several of those who were sued, said at the time that they weren’t following through because he didn’t think they were ready to prove the fraud.
However, with former Stanford chief financial officer James Davis admitting fraud Thursday, the case against the advisers might now be stronger—which might be why Janvey decided to file an additional complaint against the Stanford Group Company advisers.
Still, Janvey never claims in the supplemental lawsuit that the advisers knew they were perpetrating the fraud. Stanley, in the same previous interview, said, “It’s like saying, ‘I, Stanford company, who paid you for a product I asked you to sell, that I now believe is part of a fraud … I want that money back.”
Stanley was not immediately available for comment. To read the full suit, click here.
