BusinessBusiness RecoveryVantis receivers fear ‘significant’ asset shortfall at Stanford

Vantis receivers fear 'significant' asset shortfall at Stanford

Nigel Hamilton-Smith and Peter Wastell believe they have uncovered a discrepancy between Stanford assets and what clients are owed

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.’

Further reading

Stanford
CFO to co-operate with the Feds

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