$7 billion swindle: The investors in the $7 billion Ponzi scheme run by Allen Stanford may start getting a small portion of their money back.
Victims who unwittingly invested into a $7 billion Ponzi scheme run by former mogul Allen Stanford might be able to start recuperating their losses, it was reported.
Parties, including the Justice Department, who were in legal battles over how to best divide around $300 million in frozen assets that were formerly owned by Stanford came to an agreement this week.
“The freeing up of funds … is a good thing,” Angela Shaw, who founded the Stanford Victims Coalition, told The Associated Press. Her family lost around $4.5 million in Stanford’s scheme.
“Without the … agreement, the (parties) will be forced to expend substantial time, energy and money fighting over the Stanford assets,” wrote the attorneys for Ralph Janvey, who was appointed by a judge to look over the money recovery, according to AP.
A retired woman, Kate Freeman, who lost $820,000, welcomed the move.
“This will help all of the victims,” Freeman told AP. “This will put a little bit of money in everyone’s pocket.”
Investors will probably only get a very small sum back. AP notes they will likely only get around 1 percent of what they invested.
“If you’ve saved your whole life and invested $300,000, you are only getting back $3,000,” said Shaw.
Stanford, a former financer and sports sponsor, is currently serving a 110-year prison sentence over the Ponzi scheme. He was convicted in March 2012 and sentenced in June 2012.
When he was sentenced, Stanford said that he was sorry for “depositors, employees, families and my own family.”
But he stressed, “I am not a thief,” according to the Houston Chronicle.
Stanford was often compared to Bernie Madoff, who was convicted and sentenced for a $17 billion Ponzi scheme, but prosecutors said that Stanford kept more money. Stanford had a net worth of $2 billion and Madoff only had $823 million.
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