Stanford Ponzi Investors Ordered to Return $2M

DALLAS (CN) - Two dozen investors in R. Allen Stanford's $7 billion Ponzi scheme must return approximately $2 million in profits they received, a Dallas federal judge ruled Tuesday.

U.S. District Judge David C. Godbey granted in part court-appointed receiver Ralph S. Janvey's motions for partial summary judgment in six lawsuits filed in 2009 and 2010 against investors who received more money than what they invested.

"The court previously granted the receiver's motion for summary judgment against similarly situated net-winner defendants," the 11-page order said. "The court found that the receiver had established Stanford operated a Ponzi scheme, and that the net-winner defendants had not provided 'value' to the Stanford entities for the interest payments they had received. Based on those conclusions, the court granted the receiver's motion as to net winner defendants whose interest payments had been factually established. The Fifth Circuit subsequently affirmed the court's orders."

The appeals court ruled in Sept. 2014 that allowing net-winner investors to keep their profits would "further the debtors' fraudulent scheme at the expense of other" investors. It concluded that any recovery would be paid out of money "rightfully belonging" to the other victims of the Ponzi scheme, not from the Stanford entities' own assets "because they had no assets they could legitimately call their own."

Relying on that ruling, Godbey wrote the defendants "have not suggested that the court's analysis should be any different here" regarding their alleged failure to provide "value" for the payments.

The defendants include Anibal Morgado, David Morgado, and Vasco M. Diniz Morgado, who were ordered to return over $672,000. Chloee K. Poag and G. Dan Poag Jr. were ordered to repay over $247,000. The remaining individual defendants were ordered to repay $23,000 to $178,000.

Godbey also ruled that Janvey cannot recover $181,000 from Joyce S. Erfurdt and T. Mark Kelly, having addressed their objections to the receiver's claims in a separate order.

He also declined to order payment from George and Dolores Rollar, concluding there is still an unresolved issue of fact over whether Janvey acted diligently in serving them.

Janvey has filed approximately 50 lawsuits against Stanford money recipients since his appointment, according to the Courthouse News database.

Follow @davejourno

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