Vantis wins control of Stanford millions

Published on Saturday 4 July 2009 14:41

VANTIS Business Recovery Services, a UK-based receiver appointed by the Antiguan authorities, has won control of $100 million (£61m) of assets from disgraced billionaire Sir Allen Stanford following a court ruling.

The High Court of Justice decision allows Vantis to press ahead with its efforts to collect Stanford's assets from around the world. It will distribute them to thousands of investors who purchased the allegedly fraudulent certificates of deposit issued by Stanford International Bank. The assets have been frozen by Britain's Serious Fraud Office.

However, a US-based receiver said it will fight the ruling. Ralph Janvey, appointed by US courts to liquidate Stanford assets, said in a statement that the case was "wrongly decided" and he will appeal. The two receivers are fighting over who has jurisdiction over Stanford's assets, frustrating investors who are eager to recover money they invested in what US authorities have said is a $7 billion (4bn) Ponzi scheme.

Stanford, who financed the Stanford Twenty20 cricket series last year, was taken into custody in May and indicted on 21 counts, including fraud and money laundering. He has pleaded not guilty to all charges and is currently in custody in Houston.

In Mexico, several clients of Stanford Financial Group are suing insurance broker Willis Group Holdings, saying it was a willing participant in the fraud at the Texas-based investment company. The lawsuit, filed in federal court in Dallas, said Willis "crossed the line from being mere insurance brokers" to acting as sales agents for Stanford. The lawsuit filed on Thursday said that Willis lent recognition and credibility to Stanford's business.

The investors are seeking more than $1bn in damages from Willis.