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Agreement Between Stanford U.S. Receiver and Antiguan Joint Liquidators of Stanford International Bank

Agreement Between Stanford U.S. Receiver and Antiguan Joint Liquidators of Stanford International Bank

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This is a motion seeking the District Court's approval of an agreement between the U.S. Receiver appointed to liquidate the Stanford Financial Group of Companies and the Antiguan Joint Liquidators of Stanford International Bank
This is a motion seeking the District Court's approval of an agreement between the U.S. Receiver appointed to liquidate the Stanford Financial Group of Companies and the Antiguan Joint Liquidators of Stanford International Bank

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Categories:Types, Business/Law
Published by: Stanford Victims Coalition on Mar 14, 2013
Copyright:Attribution Non-commercial

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A
MENDED
J
OINT
M
OTION TO
A
PPROVE
S
ETTLEMENT
 A
GREEMENT AND
C
ROSS
-B
ORDER
P
ROTOCOL
 
IN THE UNITED STATES DISTRICT COURTFOR THE NORTHERN DISTRICT OF TEXASDALLAS DIVISION
SECURITIES AND EXCHANGE COMMISSION,Plaintiff,v.STANFORD INTERNATIONAL BANK, LTD., ETAL.,Defendants.§§§§§§§§§§ Case No. 3:09-CV-0298-NIn re:STANFORD INTERNATIONAL BANK, LTD.,Debtor in a Foreign Proceeding.§§§§§§ Civil Action No. 3:09-CV-0721-N______________________________________________________________________________
AMENDED JOINT MOTION OF THE SEC, RECEIVER, EXAMINER, ANDOFFICIAL STANFORD INVESTORS COMMITTEE TO APPROVE SETTLEMENTAGREEMENT AND CROSS-BORDER PROTOCOL AND BRIEF IN SUPPORT
1
 
______________________________________________________________________________
1
This Amendment is submitted solely to modify the title of the motion. No changes have been made to thebody of the motion.
Case 3:09-cv-00298-N Document 1793 Filed 03/12/13 Page 1 of 15 PageID 49046
 
A
MENDED
J
OINT
M
OTION TO
A
PPROVE
S
ETTLEMENT
 A
GREEMENT AND
C
ROSS
-B
ORDER
P
ROTOCOL
 
1
 
INTRODUCTION
The SEC, the Receiver, the Examiner, and the Official Stanford InvestorsCommittee respectfully submit this Joint Motion to Approve the Settlement Agreement andCross-Border Protocol. For several years the Movants, on the one hand, and the Antiguan JointLiquidators, on the other, have been engaged in difficult, complex, and costly litigation forcontrol of the Stanford assets. Most of this litigation is not close to being finally resolved. Solong as it continues, millions of dollars in assets that could otherwise be distributed to the victimsof the Stanford Ponzi scheme will remain tied up in the courts. To avoid this undesirableoutcome, the parties have negotiated a global settlement agreement. Before that agreement canbe implemented, however, it must be approved by this Court, the Antiguan Court, and theCentral Criminal Court in London. This Court should approve the Settlement Agreementbecause doing so is indisputably in the best interests of the victims and the receivership.The Settlement Agreement will settle pending litigation between the Movants andthe Antiguan Joint Liquidators, ending costly and protracted disputes over Stanford assetslocated inside and outside of the United States, and will expedite the distribution of a substantialportion of $300 million in foreign Stanford assets to the creditor-victims of the Stanford Ponzischeme. The Settlement Agreement will also facilitate cooperation and coordination between theU.S. Receiver and the Antiguan Joint Liquidators, thereby reducing administrative costs andincreasing the probability of successful outcomes in the efforts of the two estates. Without theSettlement Agreement, the Movants will be forced to expend substantial time, energy and moneyfighting over the Stanford assets. For these reasons, the Movants request the Court set a hearingon this Motion and, following that hearing, approve the Settlement Agreement so that the partiesmay implement it as quickly as possible.
Case 3:09-cv-00298-N Document 1793 Filed 03/12/13 Page 2 of 15 PageID 49047
 
A
MENDED
J
OINT
M
OTION TO
A
PPROVE
S
ETTLEMENT
 A
GREEMENT AND
C
ROSS
-B
ORDER
P
ROTOCOL
 
2
 
FACTUAL BACKGROUND
The Securities and Exchange Commission (“SEC”) filed its lawsuit on February17, 2009, against defendants R. Allen Stanford, James M. Davis, Laura Pendergest-Holt, andthree of Mr. Stanford’s companies, Stanford International Bank, Ltd., Stanford Group Company,and Stanford Capital Management, LLC. (
See
Doc. 1.)
2
With the help of others, the defendantshad created and carried out a global, multi-billion dollar Ponzi scheme. Tens of thousands of customers were induced to purchase certificates of deposit and/or to deposit funds with StanfordInternational Bank, Ltd. (“SIB”). This money was then funneled by Mr. Stanford and his co-conspirators to more than 130 companies located in at least 14 countries, and used to fund Mr.Stanford’s lavish lifestyle and to maintain and further the fraud scheme. (
See Janvey v. Adams
,588 F.3d 831, 833 (5th Cir. 2009).)When this massive Ponzi scheme was uncovered, it became necessary to locateand gather the many Stanford assets dispersed around the world so that they could be preservedand eventually distributed to the victims of the fraud. To this end, and at the request of the SEC,this Court appointed Ralph S. Janvey as equity receiver (“Receiver”) for the Stanford entities onFebruary 17, 2009. (
See
Doc. 10.) Pursuant to the Second Amended Order Appointing Receiver(“Receivership Order”), the Receiver is authorized to take possession, custody and control of theStanford Receivership Estate, including all domestic and foreign assets of R. Allen Stanford,SIB, Stanford Group Company, and other Stanford entities.
3
(Doc. 157 at ¶¶ 4-5.) The EasternCaribbean Supreme Court in Antigua and Barbuda (“Antiguan Court”), where SIB is located,also undertook measures in response to SIB’s collapse. In 2009 the Antiguan Court issued an
2
Unless otherwise stated, citations to court records herein reference the docket numbers from
SEC v.Stanford Int’l Bank, et al.
, No. 3:09-CV-298-N (N.D. Tex., filed Feb. 17, 2009).
3
Some of the Receiver’s responsibilities have also been delegated by order of this Court to the OfficialStanford Investors Committee (“OSIC”).
Case 3:09-cv-00298-N Document 1793 Filed 03/12/13 Page 3 of 15 PageID 49048

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