Stanford Oct 28 Interim Update

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Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 1 of 4 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION SECURITIES AND EXCHANGE COMMISSION, Plaintiff, v. STANFORD INTERNATIONAL BANK, LTD., STANFORD GROUP COMPANY, STANFORD CAPITAL MANAGEMENT, LLC, R. ALLEN STANFORD, JAMES M. DAVIS, and LAURA PENDERGEST-HOLT, Defendants. § § § § § § § § § § § § § Case No.: 3-09-CV-0298-N _____________________________________________________________________ RECEIV
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  Receiver’s Interim Report on Asset Collection and Cost ReductionPage 1 IN THE UNITED STATES DISTRICT COURTFOR THE NORTHERN DISTRICT OF TEXASDALLAS DIVISIONSECURITIES AND EXCHANGE COMMISSION,Plaintiff,v.STANFORD INTERNATIONAL BANK, LTD.,STANFORD GROUP COMPANY,STANFORD CAPITAL MANAGEMENT, LLC,R. ALLEN STANFORD, JAMES M. DAVIS, andLAURA PENDERGEST-HOLT,Defendants.§§§§§§§§§§§§§Case No.: 3-09-CV-0298-N  _____________________________________________________________________ RECEIVER’S INTERIM REPORT ON ASSET COLLECTIONAND COST REDUCTION _____________________________________________________________________  The Receiver hereby submits for the Court’s consideration the followinginformation on the results of the Receiver’s asset collection and cost reduction efforts, which iscurrent as of October 28, 2009. Additional detail is contained in the attached Appendix.At present, the total value of the (1) cash on hand, (2) assets, and (3) claimscurrently being pursued exceeds $1.5 billion.  The total of all cash collected is $128.8 million, of which $71.5 millionremains on hand after payment of expenses.  Assets under the Receiver’s control, but yet to be monetized, include (1) private equity, (2) Stanford Bank of Panama, (3) coins and bullion, (4)domestic real estate, and (5) personal property including aircraft, boats,and cars.  Assets and claims currently being pursued include (1) claims againstinvestor relief defendants, (2) claims against brokers and managingdirectors, (3) claims against non-broker former employees, (4) claimsagainst other third parties, (5) claims under political risk insurance policycoverage, and (6) disputed foreign accounts. Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 1 of 4  Receiver’s Interim Report on Asset Collection and Cost ReductionPage 2  The Receiver has identified approximately $335 million in cash and other investments in foreign accounts, to which both the Receiver and theAntiguan liquidators assert a claim.  The proceeds from the pending sale of the Bank of Panama will beapproximately $13.5 million.  Private equity yet to be liquidated is expected to produce an estimated$26.4 to $31.4 million in proceeds.  Pending claims include: o Claims against relief defendant investors for approximately $894million o Claims against brokers and managing directors for approximately$136 million o Claim under political risk insurance policy for $30 million o Other claims, either pending or under analysis, for in excess of $18millionIn the seven months since the inception of the Receivership, the Receiver hasachieved a 98% reduction in the recurring monthly operating expenses, relative to the sevenmonths prior to the inception of the Receivership, when the average monthly run rate was inexcess of $33.3 million. The Receiver has reduced the current-average monthly run rate to lessthan $1.0 million, by:  Reducing personnel headcount and other administrative costs for a savingsof $28.2 million per month.  Cancelling leases and vacating branch offices for a savings of $1.8 million per month.  Winding down aviation operations for a savings of $2.7 million per month.The attached Appendix contains extensive detail and dollar amountscorresponding to each of the above assets, claims, and cost savings. Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 2 of 4  Receiver’s Interim Report on Asset Collection and Cost ReductionPage 3 Dated: October 28, 2009Respectfully submitted,B AKER  B OTTS L.L.P.By: /s/ Kevin M. Sadler Kevin Sadler Texas Bar No. 17512450kevin.sadler@bakerbotts.comRobert I. HowellTexas Bar No. 10107300robert.howell@bakerbotts.comDavid T. ArlingtonTexas Bar No. 00790238david.arlington@bakerbotts.com1500 San Jacinto Center 98 San Jacinto Blvd.Austin, Texas 78701-4039(512) 322-2500(512) 322-2501 (Facsimile)Timothy S. DurstTexas Bar No. 00786924tim.durst@bakerbotts.com2001 Ross AvenueDallas, Texas 75201(214) 953-6500(214) 953-6503 (Facsimile) ATTORNEYS FOR RECEIVER RALPH S. JANVEY Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 3 of 4  Receiver’s Interim Report on Asset Collection and Cost ReductionPage 4 CERTIFICATE OF SERVICE On October 28, 2009, I electronically submitted the foregoing report with theclerk of court for the U.S. District Court, Northern District of Texas, using the electronic casefiling system of the court. I hereby certify that I have served the Court-appointed Examiner, andall counsel and/or pro se parties of record electronically or by another manner authorized byFederal Rule of Civil Procedure 5(b)(2)./s/ Kevin M. Sadler Kevin M. Sadler  Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 4 of 4
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