* Stanford should forfeit assets, restitution too complex
* Stanford convicted of running $7 billion fraud
* Sentencing set for June 14
June 4 The U.S. government said it would be
"impracticable" to enforce an order of restitution against
financier Allen Stanford to victims of his estimated $7 billion
Ponzi scheme and that it should be permitted to compensate fraud
victims with forfeited assets.
In a Monday filing with the federal court in Houston, the
Department of Justice said the large number of victims, the
difficulty of calculating their losses and the freezing of
Stanford's assets in various jurisdictions would make
A federal jury on March 6 convicted Stanford, 62, on fraud,
conspiracy and obstruction charges over what prosecutors called
the sale of bogus certificates of deposit from his Antigua-based
Stanford International Bank Ltd.
Stanford is scheduled to be sentenced on June 14 and could
spend the rest of his life in prison. The jury also found that
federal authorities should try to seize $330 million of frozen
funds that Stanford stashed in 29 foreign bank accounts.
Once considered a billionaire, Stanford later claimed to be
The Justice Department said restitution would be complicated
because customer accounts were credited with $1.3 billion of
interest that was not paid and some customers but not others
withdrew "fictitious" interest or principal from their accounts.
It said it has agreed in principle with the U.S. Securities
& Exchange Commission on a joint distribution process.
The Justice Department also said a receiver winding down
parts of Stanford's business will to ensure fairness try to
calculate "net" amounts lost by each investor. Such an approach
is also being used in the winding down of Bernard Madoff's firm.
The case is U.S. v. Stanford, U.S. District Court, Southern
District of Texas, No. 09-cr-00342.