5th Circ. To Take On Dispute Over Stanford Clawbacks

Law360, New York (October 30, 2009, 6:50 PM EDT) -- The receiver marshaling the estate of accused Ponzi kingpin Robert Allen Stanford is set to square off Monday in the U.S. Court of Appeals for the Fifth Circuit over the extent of his clawback powers, launching a debate that could recast a legal machinery that unevenly distributes losses among investors.

Receiver Ralph S. Janvey is urging the appeals court to do away with a rule of law he says perpetuates rank inequality in the way Ponzi schemes are dealt with, allowing privileged relief defendants to profit...
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