Houston Attorneys:Board Certified Bankruptcy Lawyer

713-623-4242

Debt Management Law News

February 11, 2010

Hearing in Stanford case set over bankruptcy issue

DALLAS — Some investors allegedly defrauded by jailed Texas financier R. Allen Stanford are trying to get his businesses put into bankruptcy.

U.S. District Judge David Godbey could rule on the bankruptcy issue at a federal court hearing in Dallas on Thursday.

The government accuses Stanford of running a $7 billion Ponzi scheme by promising inflated returns on certificates of deposit at his Antiguan bank. He also is accused of skimming more than $1 billion for personal use.

Stanford, who is jailed in the Houston area on similar criminal charges, denies the allegations.

Attorney Greg Blue says placing the companies in bankruptcy would give every fleeced investor a voice in a potential recovery. Receiver Ralph Janvey, who was appointed by the court to return as much money as possible to investors, opposes bankruptcy.

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

www.chron.com


More...