This afternoon the Stanford receiver Ralph Janvey filed a report with court detailing his findings to date. In the 58-page document is an overview of how the Stanford companies and the estate operated, including news that “very few people were privy to sufficient information to understand the totality of the operations.”
“The structure was seemingly designed to obfuscate holdings and transfers of cash and assets,” says Janvey. His findings include that once the high-incentive certificates of deposits were purchased by clients the funds were then “disbursed to Allen Stanford or to other Stanford-owned entities or used to purchase private equity and other investments, to pay CD redemptions and interest or to pay other expenses and obligations’’—supporting the Ponzi scheme allegations.
The initial conclusions of the report determine that the continued operations of any of the Stanford companies were dependent upon the continued sales of the highly controversial CDs. Of these CDs, approximately $7.2 billion of them are still outstanding as of February 22. Janvey continues to say it appears that during the last year, and probably for longer than that, Stanford’s assets were inadequate to cover the amount of its liabilities on its issued and outstanding CDs as those liabilities came due.” To read the full document, including further details on what the receivership has been able to account for from the Stanford companies and estates, click here.—Olivia Watkins
