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Allen Stanford's Ponzi scheme recovery is worth $1 billion

Allen Stanford's Ponzi scheme recovery is worth $1 billion

The receiver's lawyers said that the receiver recouped more than $1 billion for victims of the Texas financier Allen Stanford'' Ponzi scheme, the largest by dollar amount other than Bernard Madoff'd fraud, on Monday.

When Ralph Janvey, the receiver of Stanford Financial Group, got $65 million in a June 2016 settlement with insurers including Lloyd's of London, which won final court approval in January after years of litigation.

Janvey expects to give the settlement a hand in the first quarter of 2022. As of April 29, he received court approval to distribute about 550 million dollars and distributed $443 million.

After being considered a billionaire but later declared indigent, Stanford, 71, is serving 104 years in prison after he convicted of running s7.2 billion Ponzi scheme affecting approximately 18 former investors.

Prosecutors said Stanford sold a fraudulent high-yielding certificates of deposit through his Antigua-based Stanford International Bank, and used its investors money to make risky investments and fund sexy lifestyles

The fraud was uncovered in February 2009 and lasted about two decades.

"When the receivership started, the cash flow remained in a bank that was supposed to be holding more than $7 billion," said Kevin Sadler, whose partner, Baker Botts, represented Janvey, in an interview "It's taken more than 12 years, but getting to $1 billion is a huge achievement."

More recovery is possible.

Janvey is defending against appeals based on an $124.9 million judgment he won against Gary Magness.

He is working on a $4 billion lawsuit against five former Stanford banks including HSBC (HSBA.L), Societe Generale (SOGN.PA) and TD Bank (TD.TO).

Last month, the U.S. District Judge David Godbey in Dallas rejected the HSBC's and Societe Generale'' s bid to dismiss that case.

In response to Madoff's Ponzi scheme, the recovery efforts have recouped more than $18 billion for victims. read more more about the money and resources of the victims recovery.

Madoff died in April when she served a prison sentence of 150 years. At age 82, she died at the age of 83 in an April prison. His fraud was discovered in December 2008.

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