Jury Blocks Stanford Receiver's $88M Clawback Claim

By Jess Krochtengel (January 18, 2017, 7:42 PM EST) -- A Texas federal jury on Wednesday found billionaire Gary Magness acted in good faith when taking out $88.2 million in loans from a bank affiliated with R. Allen Stanford's $7 billion Ponzi scheme, blocking a clawback claim by the receiver for the Stanford fraud.

The seven-member jury deliberated for about three hours before finding that three investment vehicles owned by Magness had notice of the Stanford empire's potentially being fraudulent and should have investigated, but that it would have been futile for Magness to attempt to investigate the Stanford bank's complex fraud. The Magness companies — GMAG LLC, Magness Securities LLC...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!