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    Stanford Oct 28 Interim Update

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    Houston Chronicle
    The Receiver submitted an interim report on asset collection and cost reduction in the Stanford receivership case. As of October 28, 2009: 1) The total value of cash on hand, assets, and claims being pursued exceeded $1.5 billion. This included $71.5 million in cash after expenses. 2) Assets not yet liquidated included private equity, Stanford Bank of Panama, coins/bullion, real estate, and personal property. 3) Claims being pursued were against investors, brokers, employees, third parties, insurance policies, and foreign accounts totaling over $1 billion. 4) The Receiver achieved a 98% reduction in monthly operating expenses from $33

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    Stanford Oct 28 Interim Update

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    Houston Chronicle
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    The Receiver submitted an interim report on asset collection and cost reduction in the Stanford receivership case. As of October 28, 2009: 1) The total value of cash on hand, assets, and claims being pursued exceeded $1.5 billion. This included $71.5 million in cash after expenses. 2) Assets not yet liquidated included private equity, Stanford Bank of Panama, coins/bullion, real estate, and personal property. 3) Claims being pursued were against investors, brokers, employees, third parties, insurance policies, and foreign accounts totaling over $1 billion. 4) The Receiver achieved a 98% reduction in monthly operating expenses from $33

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    The Receiver submitted an interim report on asset collection and cost reduction in the Stanford receivership case. As of October 28, 2009: 1) The total value of cash on hand, assets, and claims being pursued exceeded $1.5 billion. This included $71.5 million in cash after expenses. 2) Assets not yet liquidated included private equity, Stanford Bank of Panama, coins/bullion, real estate, and personal property. 3) Claims being pursued were against investors, brokers, employees, third parties, insurance policies, and foreign accounts totaling over $1 billion. 4) The Receiver achieved a 98% reduction in monthly operating expenses from $33

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    Download as PDF, TXT or read online from Scribd
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    5K views4 pages

    Stanford Oct 28 Interim Update

    Uploaded by

    Houston Chronicle
    The Receiver submitted an interim report on asset collection and cost reduction in the Stanford receivership case. As of October 28, 2009: 1) The total value of cash on hand, assets, and claims being pursued exceeded $1.5 billion. This included $71.5 million in cash after expenses. 2) Assets not yet liquidated included private equity, Stanford Bank of Panama, coins/bullion, real estate, and personal property. 3) Claims being pursued were against investors, brokers, employees, third parties, insurance policies, and foreign accounts totaling over $1 billion. 4) The Receiver achieved a 98% reduction in monthly operating expenses from $33

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    of 4

    Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 1 of 4

    IN THE UNITED STATES DISTRICT COURT


    FOR THE NORTHERN DISTRICT OF TEXAS
    DALLAS DIVISION

    SECURITIES AND EXCHANGE COMMISSION, §


    §
    Plaintiff, §
    §
    v. § Case No.: 3-09-CV-0298-N
    §
    STANFORD INTERNATIONAL BANK, LTD., §
    STANFORD GROUP COMPANY, §
    STANFORD CAPITAL MANAGEMENT, LLC, §
    R. ALLEN STANFORD, JAMES M. DAVIS, and §
    LAURA PENDERGEST-HOLT, §
    §
    Defendants. §

    _____________________________________________________________________

    RECEIVER’S INTERIM REPORT ON ASSET COLLECTION


    AND COST REDUCTION
    _____________________________________________________________________

    The Receiver hereby submits for the Court’s consideration the following

    information on the results of the Receiver’s asset collection and cost reduction efforts, which is

    current as of October 28, 2009. Additional detail is contained in the attached Appendix.

    At present, the total value of the (1) cash on hand, (2) assets, and (3) claims

    currently being pursued exceeds $1.5 billion.

     The total of all cash collected is $128.8 million, of which $71.5 million
    remains on hand after payment of expenses.

     Assets under the Receiver’s control, but yet to be monetized, include (1)
    private equity, (2) Stanford Bank of Panama, (3) coins and bullion, (4)
    domestic real estate, and (5) personal property including aircraft, boats,
    and cars.

     Assets and claims currently being pursued include (1) claims against
    investor relief defendants, (2) claims against brokers and managing
    directors, (3) claims against non-broker former employees, (4) claims
    against other third parties, (5) claims under political risk insurance policy
    coverage, and (6) disputed foreign accounts.

    Receiver’s Interim Report on Asset Collection and Cost Reduction Page 1


    Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 2 of 4

     The Receiver has identified approximately $335 million in cash and other
    investments in foreign accounts, to which both the Receiver and the
    Antiguan liquidators assert a claim.

     The proceeds from the pending sale of the Bank of Panama will be
    approximately $13.5 million.

     Private equity yet to be liquidated is expected to produce an estimated


    $26.4 to $31.4 million in proceeds.

     Pending claims include:

    o Claims against relief defendant investors for approximately $894


    million

    o Claims against brokers and managing directors for approximately


    $136 million

    o Claim under political risk insurance policy for $30 million

    o Other claims, either pending or under analysis, for in excess of $18


    million

    In the seven months since the inception of the Receivership, the Receiver has

    achieved a 98% reduction in the recurring monthly operating expenses, relative to the seven

    months prior to the inception of the Receivership, when the average monthly run rate was in

    excess of $33.3 million. The Receiver has reduced the current-average monthly run rate to less

    than $1.0 million, by:

     Reducing personnel headcount and other administrative costs for a savings


    of $28.2 million per month.

     Cancelling leases and vacating branch offices for a savings of $1.8 million
    per month.

     Winding down aviation operations for a savings of $2.7 million per


    month.

    The attached Appendix contains extensive detail and dollar amounts

    corresponding to each of the above assets, claims, and cost savings.

    Receiver’s Interim Report on Asset Collection and Cost Reduction Page 2


    Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 3 of 4

    Dated: October 28, 2009 Respectfully submitted,

    BAKER BOTTS L.L.P.

    By: /s/ Kevin M. Sadler


    Kevin Sadler
    Texas Bar No. 17512450
    [email protected]
    Robert I. Howell
    Texas Bar No. 10107300
    [email protected]
    David T. Arlington
    Texas Bar No. 00790238
    [email protected]
    1500 San Jacinto Center
    98 San Jacinto Blvd.
    Austin, Texas 78701-4039
    (512) 322-2500
    (512) 322-2501 (Facsimile)

    Timothy S. Durst
    Texas Bar No. 00786924
    [email protected]
    2001 Ross Avenue
    Dallas, Texas 75201
    (214) 953-6500
    (214) 953-6503 (Facsimile)

    ATTORNEYS FOR RECEIVER


    RALPH S. JANVEY

    Receiver’s Interim Report on Asset Collection and Cost Reduction Page 3


    Case 3:09-cv-00298-N Document 855 Filed 10/28/2009 Page 4 of 4

    CERTIFICATE OF SERVICE

    On October 28, 2009, I electronically submitted the foregoing report with the

    clerk of court for the U.S. District Court, Northern District of Texas, using the electronic case

    filing system of the court. I hereby certify that I have served the Court-appointed Examiner, and

    all counsel and/or pro se parties of record electronically or by another manner authorized by

    Federal Rule of Civil Procedure 5(b)(2).

    /s/ Kevin M. Sadler


    Kevin M. Sadler

    Receiver’s Interim Report on Asset Collection and Cost Reduction Page 4

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