Vantis receivers fear 'significant' asset shortfall at Stanford

Receivers from Vantis fear the coffers of Stanford International Bank will not hold enough cash to pay 28,000 investors what they are owed.

Nigel Hamilton-Smith and Peter Wastell are currently in Antigua in a bid to recover the assets after an alleged $8bn (£5.5bn) fraud at Stanford International Bank and Stanford Trust Company was uncovered.

Hamilton-Smith said: 'While our investigations continue, we are unable to advise of the value of assets we expect to recover, though at this time there does appear to be a significant shortfall of assets against sums owing to investors.'

The pair said the job was set to drag on as the true scale of their task came to light.

'We continue in our work to identify SIB assets. This is increasingly a forensic exercise to trace funds that have flowed through other Stanford entities and, due to the scale of this project, is likely to take many months to complete.

'We have now issued statements to all investors who would normally receive them and we have received more than 3,000 change of address and mail instructions, which are being processed on a daily basis.

'Together with our IT team, we are also putting in place a web-based claims management process to assist the efficient administration of claims from investors around the world.

'We are seeking further co-operation with the US Receiver to ensure that all possible assets are located to secure a fair distribution of those assets recovered to investors.'

Hamilton-Smith said the US Receiver had unfrozen some accounts held with Stanford Group company, but warned any linkage with Stanford International Bank would mean other accounts would be kept in limbo.

'It is worth clarifying again, that though the US Receiver has released some brokerage accounts held with Stanford Group Company, Stanford Group Company is a separate entity to SIB.

'Where there is any connection between a Stanford Group Company brokerage account and SIB Certificate of Deposits, these accounts remain frozen along with all other SIB accounts.'

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