Ooops, Stanford case “sealed” docs weren’t
Howdy, NEMS360.com readers. It’s Day 1 for “From the Front Row,” my periodic blog about stuff I’ve run across in the course of my Daily Journal comings and goings.
Today, it’s about how even the best of us can mess up.
You may have seen my story about Sir R. Allen Stanford’s attorney’s sealed motion to the U.S. District Court in the Southern District of Texas. My professional guess is that the motion asks the court for immediate financial relief to Stanford’s high-powered attorney or the attorney is going to have to spend his time with paid customers.
This assumption comes from the fact that the sealed motion had an exhibit attached. I clicked on the exhibit, printed it and discovered a series of letters between Stanford’s attorney and insurance carriers about using Stanford insurance policies or Stanford Financial Group policies to help pay the legal bills.
Stanford had signed over a $5-million Lloyds of London policy to the attorney, who told him that amount probably wouldn’t be enough.
Ultimately, the underwriters said the court-appointed receiver said the value from these policies are “assets,” thus frozen by the court and not available to pay legal fees – until the court says to do so.