The Securities and Exchange Commission filed an emergency motion today to limit the existing Stanford Financial Group receivership. The motion requests that a federal court in Dallas grant exclusive authority to the SEC to file suits and clawback claims against investors. The SEC alleges the “receiver’s clawback claims against innocent investors seeking the return of principal are not supported by case law and are contrary to commission practice.”
Stanford Receiver Ralph Janvey is expected to file hundreds of clawback claims against investors, including a large number from the Baton Rouge area, some of whom are Exxon retirees or prominent business members, before a court-mandated fund release date of Aug. 3.
The motion claims that if Janvey is allowed to pursue clawback lawsuits, it would consume massive amounts of the remaining funds that could be utilized to restore those lost in the alleged Ponzi scheme. The requested change to the receivership, as is explain in the conclusion, will “obviate the need to seek a more profound change in the administration of the receivership estate,” whose actions are “supported by neither logic nor the law.”
To read the full motion, click here.—Olivia Watkins
