Stanford Investors Told To Return Up To $220M In Profits

Law360, Houston (January 23, 2013, 5:13 PM EST) -- A Texas federal judge on Tuesday ruled that investors who profited as much as $220 million from Robert Allen Stanford’s $7 billion Ponzi scheme must forfeit all payments they received above their original investments with Stanford Financial Group.

U.S. District Judge David Godbey granted Stanford Financial receiver Ralph S. Janvey’s motion to recover the excess proceeds from some 800 “net winners” of the scheme, reasoning that they were not entitled to interest payments derived from fraud.

"Starting from the premise that contracts with Ponzi schemes are...
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