Only a few months after Ralph Janvey was assigned to the financial receivership of the Stanford Financial Group, he’s requesting almost $20 million in expenses. The list of expenses includes professional services acquired from across the globe, including forensic accountants, attorneys and investigators, but only covers fees up through April 12. Janvey has requested the court allow him to submit monthly expenses in the future.
The Louisiana Stanford Victims Group, which is working with some members of Congress and the Louisiana Legislature to aid victims, is outraged at what they consider to be excessive fees related to the receivership. Despite some illiquid assets, there is still roughly only $69 million in cash on hand that should be utilized for repaying investors, creditors and the receivership fees. Jean Anne Mayhall, a spokeswoman for the LSVG, says, “While we understand the complexity of this case, we respectfully suggest that it is beyond belief that our recovered assets are being used to pay attorney’s fees at this rate. It is insult upon injury in its truest form.”
To further complicate matters, the liquidation of the Stanford International Bank in Antigua released a statement last week that detailed the financial breakdown of the bank. The liquidators found that while there was about $1 billion in assets, depositor liabilities were as high as $7.2 billion. The deficit in assets may impact investors and bank clients across the globe. To read more on the receivership’s claim to fees, click here.—Olivia Watkins
