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...

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