Stanford investors soon may claim a small part of losses

People who lost money in the R. Allen Stanford investment scheme could see a plan in place by year’s end to begin recouping a fraction of their losses, an attorney for the court-appointed receiver says. “There’s now a structure and a process for those who have claims,” says Kevin Sadler of Baker Botts, lead counsel for the receiver, Dallas lawyer Ralph Janvey. As reported by The San Antonio Express, U.S. District Judge David Godbey of Dallas, who is overseeing the receivership, on Friday approved a formal claims process that sets a Sept. 1 deadline for those who have not previously filed a claim. Sadler calls the ruling a “key milestone” because it allows Janvey to get an accurate count of how many claims are out there. Once the deadline passes, Janvey can prepare a recommendation for how to distribute the money. But Angela Shaw, a defrauded investor and the founder of the Stanford Victims Coalition, downplayed the significance of the ruling. It’s merely a formality, she says, something that “has to happen.” Shaw’s concern is that investors—many already confused not only by the intricacies of the $7 billion fraud scheme but also by the various groups injecting themselves into the fight over assets—will think the ruling means a check is imminent. In addition, when that check comes, she says, it could be for as little as 2.5 cents on the dollar after the receiver’s fees and costs of distributing the money are deducted. “The investors can’t win for losing in this case,” she says. Read the full story, which includes information on how to file a claim for those who have not yet done so, here.