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"Stanford International Bank's financial statements, including its investment income, are fictional," the SEC said.
United States District Judge David Godbey froze all of the Stanford personal and corporate assets. Circuit Court of Appeals overturned a federal judge’s ruling from the previous year that threw out three class action lawsuits that are trying to use state laws to recover investor losses resulting from Stanford’s scheme.
Godbey gave them to Ralph Janvey, a Dallas receiver; Janvey will retain control until the SEC suit is resolved. Davis, the CFO of the company, agreed to change course from his not guilty plea and plead guilty to three charges related to the Ponzi scheme fraud, once details can be worked out. The ruling allows lawsuits by investors who lost millions in Stanford Ponzi scheme to go forward against several 3rd parties.
On November 13, 2009 The US District Court Ordered Brokerage Accounts to be transferred to Dominick & Dominick LLC.
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