At least two attorneys representing Stanford victims have spoken out against the freeze placed by receiver Ralph Janvey on the remaining accounts. According to Bloomberg News, John J. Little, a Dallas-based attorney, and Michael Quilling, also a victims advocate attorney, are pushing U.S. District Judge David Godbey, who has been assigned the case, to give clients access to their accounts. Stories of Stanford clients’ inability to pay for basic living expenses and bills have put a heavy strain on attempts by the receiver to recoup as much of the fraudulent certificate of deposit interest payments possible.
Little claims the receivership is operating under “pre-suit” claims on the fraudulent returns and that the freeze is not legally supported. Janvey has insisted since the initial Feb. 17 announcement that the process of slowly releasing client accounts allows for the maximum preservation of funds for all investors. Janvey has claimed that once funds are released it becomes virtually impossible to recoup investor losses.
Quilling has filed with the court to claim “extortion” on behalf of his clients. The filing continued to explain that the process for obtaining “tainted” funds abuses the Stanford clients a second time—beyond the initial blow of the SEC-alleged Ponzi scheme. To read the full story, click here.—Olivia Watkins
