Lawyers for the court-appointed receiver in the R. Allen Stanford Ponzi scheme case have a federal judge to order Trustmark National Bank to fork over the $100 million it agreed to pay earlier this year in its settlement with victims of the fraud.
Trustmark, according to court documents, has declined to pay the receiver the $100 million because Stanford, who is in federal prison serving a 110-year sentence, has objected to the settlement agreement claiming that his conviction was unconstitutional and that the receivership should be dissolved on subject matter jurisdictional issues.
Chief U.S. District Judge David Godbey rejected Stanford’s petition and rejected Stanford’s request for pauper status so that he would not have to pay the $500 required to appeal the decision to the U.S. Court of Appeals for the Fifth Circuit.
Stanford somehow came up with the money and paid for the appeal. Twice. That’s $1,000. Two different panels of the Fifth Circuit rejected the convict’s appeals as frivolous. But Stanford is now asking the full Fifth Circuit to take up his appeal en banc.
Trustmark, arguing that the settlement should not be paid because the litigation regarding the receiver’s lawsuits are not final as long as Stanford’s appeals are pending, is declining to pay the $100 million.
In court documents filed Friday, lawyers for Ralph Janvey, the Stanford receiver asked Chief Judge Godbey to declare the judgment final and order Trustmark to pay the $100 million.
“Every week that goes by with Trustmark delaying payment represents over $100,000 lost by the estate and Stanford’s victims,” Baker Botts partner Kevin Sadler, who is lead counsel for the receiver, wrote in his petition. “The reality is that time is of the essence for the defrauded Stanford investors who have waited more than 14 years for compensation for their losses.”
“Defrauded investors are aging, and further delays will only ensure that some will not live to see the day that they would have received just compensation from the settlements,” Sadler wrote.
Sadler asked Chief Judge Godbey to order lawyers for Trustmark to expedite any response they might have.
Sadler told The Texas Lawbook on Sunday that he has no idea who provided Stanford with the $1,000 to pay the appellate filing fees.
Efforts to obtain a response from Trustmark were unsuccessful on Sunday.
Janvey is also represented in the case by Baker Botts partners Scott Powers and David Arlington.