On Tuesday, the judge in Allen Stanford’s criminal case ordered Lloyd’s to pay for the defense of Stanford and his former Chief Investment Officer, Laura Pendergest-Holt, expected to cost well over $20 million.
Stanford and three officers have been charged with running an $8 billion Ponzi scheme. CNBC reports that Lloyd’s had initially agreed to pay for their defense under a director and officer’s insurance policy, but then denied the insurance claims because of evidence that the defendants engaged in money laundering – a violation of the terms of the policy.
Stanford’s attorney, Kent Schaffer, stated that “[w]e are now free to start working on this case without fear that Lloyds will once again be able to pull the plug on us.”
