Stanford offices, land may be sold due to SEC suit

The court-appointed attorney in the Stanford Financial civil suit over an alleged massive investment fraud has asked a federal judge to allow the sale of more than 50 commercial and residential properties, including nearly 20 in Mississippi.

The receiver needs to sell the real property in order to carry out his obligation to preserve the assets and minimize expenses,” according to court documents filed last week.

Company founder Allen Stanford and Baldwyn residents James Davis and Laura Pendergest-Holt are named in the suit alleging an $8 billion Ponzi scheme.

“The receiver basically is going to sell everything and do a distribution based on the claims of various creditors,” said Mercer Bullard, a law professor at the University of Mississippi and a former SEC attorney.

The list includes land in Texas, Michigan, North Carolina and an unknown number of properties in the U.S. Virgin Islands, where the company had offices and Stanford lived.

Clarion-Ledger
5/24/9