Still blocking compensation for fraud victims, Allen Stanford seeks early release - Greater Baton Rouge Business Report

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Allen Stanford, who was convicted of leading a multibillion-dollar Ponzi scheme that ensnared numerous Capital Region investors, is seeking early release from what is effectively a life sentence. 

While his effort may be a long shot–this is his third try for a "compassionate release"–the court-appointed receiver is taking the opportunity to blast a separate effort by Stanford that is holding up distribution of partial compensation to victims. 

"Defendant's actions in recent weeks demonstrate that, beyond a lack of remorse for his conduct, Defendant continues to act with actual, conscious indifference to the thousands of victims of his mega-fraud," the receiver's attorney says in a response to Stanford's motion that was filed yesterday. 

The receiver and the Official Stanford Investors Committee settled with five banks, which victims accuse of aiding Stanford' fraud, for a total of more than $1.6 billion, though the banks did not admit wrongdoing. Stanford has objected to all five settlements.

Stanford argues the court lacked jurisdiction over the receivership, so its approval of the settlements does not have the force of law. But while an appeals court has already ruled two of his objections frivolous, he says he plans to appeal those dismissals to the U.S. Supreme Court. 

The receiver says Stanford's "frivolous litigation tactics" have so far delayed receipt of the first $100 million in settlement funds, costing investors more than $100,000 per week in foregone interest. The receivership has incurred more than $91,000 in attorneys' fees responding to his objections and appeals. 

In 2012, Stanford was sentenced to a total of 110 years in prison for orchestrating a 20-year investment fraud scheme. The Houston-based U.S. District Court has given the U.S. Department of Justice until Monday to respond to Stanford's motion for release. 

Stanford has argued that a wrongful wire fraud conviction, along with his age, health and dangers posed by the pandemic, justify early release. He also says the government violated his right to counsel by freezing assets he could have used to hire the attorney of his choice.