Investors who lost their money in Allen Stanford’s alleged fraud are racing against time to file a class action lawsuit against the United States government to get back all their funds.
They’ve engaged the services of attorney-at-law, Dr Gaytri Kachroo, who filed the class action in the Bernard Madoff case in November last year. She has told the investors they need to file all the necessary documents within the next 10 days.
The January 15 date has been set so that there is enough time to process their claims ahead of the deadline to file the suit, February 16 – two years to the date Stanford was charged with multiple civil fraud and criminal charges for allegedly running a multi-billion-dollar Ponzi scheme though his Stanford International Bank (SIB) in Antigua.
If the investors miss this deadline they will be forever barred from making a claim against the US government and have therefore made an appeal to all those interested in getting their money back to visit the Stanford’s Forgotten Victims blog for advice on what they need to do.
The investors are suing the government for the failure of the Securities and Exchange Commission (SEC) to act when information surfaced several years ago that Stanford was likely running a Ponzi scheme.
Meantime, efforts continue by the US court-appointed receiver Ralph Janvey to recover monies for the more than 20,000 investors.
In the latest move, he has sued professional golfer David Toms for US $905,087 in profits, which he earned from certificates of deposit (CDs) sold by SIB.
Toms, who has earned US $33 million in his PGA Tour career to date, “previously entered into a sponsorship and endorsement relationship” with some of Stanford’s companies, according to a lawsuit filed yesterday in federal court by Janvey.
Janvey said that Toms and his company “either performed no services for the CD proceeds they received (or) performed services that did not constitute reasonably equivalent value’’ in exchange for CD proceeds he received in 2007 and 2008.
But Toms’ representative claims that the golfer never had any Stanford CDs, insisting in an interview with Bloomberg that he “had a straight brokerage account, all 100 per cent legit, no offshore bank.”