Diario Judío México - Stanford Financial Group brokerage customers with accounts holding less than $250,000 may soon get access to their funds under a proposed order filed by a court-appointed receiver overseeing Texas businessman R. Allen Stanford’s financial holdings amid a federal fraud investigation.
Texas attorney Ralph Janvey, the receiver, has been under pressure since he announced the freeze last month after the Securities and Exchange Commission brought civil charges against Mr. Stanford and two other executives, accusing them of running an $8 billion fraud.
The Justice Department is pursuing its own criminal probe into what SEC investigators say was “a massive Ponzi scheme” centered around the sales of high-yield certificates of deposit sold by Stanford’s offshore bank based in Antigua and Barbuda.
Many clients of Stanford’s brokerage operation have argued that their accounts, custodied at Pershing LLC, a subsidiary of Bank of New York Mellon Corp, shouldn’t have been frozen. The receiver’s proposed order would unfreeze accounts holding less than $250,000 effective Monday. The order wouldn’t affect accounts owned by certain Stanford employees, including the executives already accused in the SEC complaint.