Court-Appointed Examiner Slams Stanford Receiver on Fee Request

100dollarbills230The hits just keep coming on Ralph Janvey, the court-appointed receiver in the Stanford case.  As previously discussed here, Janvey has already been the subject of harsh criticism  from the SEC as well as many of the Stanford defendants.

Now, a new voice has emerged to speak out against Janvey: FT Alphaville reports that John Little, a court-appointed examiner and investor advocate, filed papers with the court this weekend opining that Janvey’s latest fee application is “alarming.” Little states that although the amounts recovered by Janvey have been much less than expected,

the Receiver has incurred fees and expenses in excess of $27 million during the first three and one-half months of his service, and he is maintaining (and projects that he will continue to maintain) an average “burn rate” or approximately $1.1 million (or more) in fees and expenses each week.

At this rate of consumption, simple math suggests the substantial possibility that the whole of the Receivership Estate could end up, not in the hands of the victimized investors, but in the pockets of the Receiver and the firms he has retained.

Little also criticizes Janvey for incurring the expenses of a PR firm, which Little says was hired to create daily press clipping “scrapbooks” for Janvey’s team that are “printed, bound, tabbed, and assembled” in hard copy.

Read the FT Alphaville article.