DALLAS, USA: Ralph Janvey, the court-appointed receiver who is managing Sir Allen Stanford’s companies in the United States, is challenging the liquidation of the Antigua-based Stanford International Bank (SIB).
Janvey made his intention clear in a statement issued after joint receivers, Nigel Hamilton-Smith and Peter Wastell of the British accountancy firm, Vantis Business Recovery Services, announced last week that they had been appointed by the Antigua and Barbuda High Court as liquidators of SIB.
“Stanford International Bank, Ltd. is one element of a consolidated enterprise that was dedicated, by people in and from the United States, to the perpetration of a scheme to defraud investors worldwide – a scheme in which only a very small percentage of the investors are Antiguans,” Janvey said. “The receiver intends to contest efforts by the Antiguan-appointed receiver/liquidators to seek to recover assets that would be distributed only through the Antiguan proceedings.”
Janvey added that his work in the U.S. has been to preserve and collect assets for the benefit of defrauded investors worldwide.
Hamilton-Smith and Wastell were appointed in February by Antigua and Barbuda’s Financial Services Regulatory Commission (FSRC) as SIB receivers after Sir Allen was charged with a US$8 million certificate of deposit (CD) fraud. When they announced that SIB was being placed into liquidation, they said the Bank’s assets were insufficient to meet the level of liabilities.
The liquidators have announced they are unable to forecast the extent of the deficiency, but said it’s likely to be substantial.