5th Circ. Denies Stanford Receiver's Clawback Bid

Law360, New York (November 16, 2009, 6:42 PM EST) -- The receiver for the estate of accused Ponzi schemer Robert Allen Stanford has lost a bid to keep hundreds of investor accounts frozen in an effort to reclaim payouts investors received before the alleged scheme was revealed.

The U.S. Court of Appeals for the Fifth Circuit ruled Friday that receiver Ralph S. Janvey should not be able to sue the investors as relief defendants, and reversed a lower court ruling that had kept the interest on their accounts frozen.

Janvey, the court-appointed receiver, had argued that...
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