CORRECTED-UPDATE 1-Stanford receiver may sue investors-judge

(Corrects 1st and 4th paragraphs to show receiver can only sue for interest payments from financer)

By Ed Stoddard

DALLAS, July 31 - A U.S. judge ruled on Friday that the court-appointed receiver overseeing the assets of Allen Stanford may sue to recover interest, but not principal, from 600 investors who hold $925 million in certificates of deposit issued by the accused swindler's Antigua bank.

The U.S. Securities and Exchange Commission had asked the court to limit the court-appointed receiver's right to pursue the so-called "clawback" claims, saying it would harm innocent investors.

"It's my inclination to deny the SEC's motion to deny the receiver's request," U.S. District Judge David Godbey said at the hearing in Dallas.

But Godbey said that he can only sue investors for interest they received from the disgraced financier.

Ralph Janvey, the receiver appointed by Godbey, filed a "clawback" lawsuit this week to recover almost $925 million from certain holders of CDs issued by the Stanford International Bank in Antigua.

The investors Janvey is targeting "cashed-out their investments before the Ponzi scheme came crashing down," Janvey's lawyers argued in a court filing on Thursday.

Stanford, who is currently in jail awaiting trail, is charged in a 21-count indictment with leading an alleged $7 billion Ponzi scheme centered around the CDs issued by his Antigua bank. The Texas billionaire also faces civil fraud charges filed by the SEC.

The SEC said in a prior filing it should have exclusive authority to sue Stanford investors to recover funds.

But Janvey has said that there are 20,000 Stanford investors who will likely get "pennies on the dollar" from the money they invested in fraudulent Stanford bank certificates of deposit, and "there is no legal authority to support such inequity," Janvey said.

Stanford has denied all wrongdoing.

The civil case is filed in federal court in Dallas under 3:09-cv-00298-N Securities and Exchange Commission v. Stanford International Bank Ltd et al. (Reporting by Ed Stoddard; editing by Andre Grenon and Maureen Bavdek)