Stanford Receiver Argues Against Reduction in Fees

Ralph Janvey (pictured), the receiver in the Stanford case, stated in a recent court filing that while the SEC apparently expected to recover as much as $1 billion in the Stanford case, only about $350 million of assets have been located.  As a result, Janvey says, the SEC is now trying to reduce fees for the receiver and firms that have been working for him since the civil fraud case was filed in February 2009.  In addition to the SEC, Reuters reports that the court-appointed examiner for the Stanford case as well as, predictably, Allen Stanford himself, also oppose the fee request, arguing that it is excessive.

Janvey responds that the requested discounts have come only after the reduced amount of the expected recovery became clear to the SEC, and that “[n]one of the professionals was retained with the understanding that they would be subjected to deep discounts if the recoverable estate assets were less than the SEC expected.”  Janvey added in his court filing that the receiver’s task has been monumental because of the difficulty of unwinding Stanford’s web of more than 130 business entities.

Read the Reuters article

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