U.S. News

Receiver wants to sell Allen Stanford's yacht

HOUSTON (Reuters) - The receiver in charge of Allen Stanford’s assets has asked a federal judge for permission to sell the alleged swindler’s luxurious 112-foot motor yacht, the Sea Eagle.

Ralph Janvey, the receiver in the case, filed a motion late on Tuesday asking U.S. District Judge David Godbey in Dallas to approve the sale of the vessel, which is currently listed for $6.5 million at a marina in Fort Lauderdale, Florida. here

Stanford bought the boat for $3.9 million in 1998 and invested “substantial sums” to renovate it. Costs included reducing the number of state rooms, replacing the teak interior with mahogany and putting in a new galley kitchen, according to the yacht broker and court papers.

The receiver has one bid for $2.5 million from an investor in Dubai who has agreed to take the vessel “as is,” but higher bids would be accepted if the sale process were approved by the judge, court papers said.

Stanford, 59, whose fortune was estimated at $2.2 billion by Forbes magazine in 2008, is accused of masterminding a $7 billion scheme involving fraudulent certificates of deposit issued by his offshore bank in Antigua.

Janvey wants to sell the vessel because it is very expensive to maintain.

“The yacht requires a 24/7 crew aboard for insurance qualification, continuous air conditioning and water service and costs the receiver over $25,000 per month just to keep it in dock,” the motion said.

In August, Janvey filed a motion seeking approval to sell Stanford’s smaller 50-foot yacht, the Little Eagle, to a buyer from Oklahoma for $150,000.

Godbey has not ruled on either motion.

Before the U.S. government seized his assets in February, Stanford lived an opulent lifestyle. He frequently flew all over the world in his private jets and owned luxury homes in Texas, Florida and the Caribbean.

Stanford is in a jail about 40 miles north of Houston awaiting trial. He has denied any wrongdoing.

Reporting by Anna Driver, editing by Gerald E. McCormick