The Receiver hereby submits for the Court’s consideration the following
information regarding the status of the Receivership, asset collection efforts,
and other ongoing activities. Unless otherwise stated herein, the information
in this report is current as of January 31, 2013 . The Receiver will supplement this report as
circumstances develop or if the information herein materially changes.
I. CASH
INFLOWS &MAJOR RECEIVERSHIP ASSETS
The total amount of cash collected by the Receiver — including, but not
limited to, remaining operating income streams, asset liquidation, and recovery
of assets and funds from third parties — was approximately $230.2 million as of
January 31, 2013 . The total of
all cash on hand was $111 million, which is net of the cash outflows discussed
in more detail below in Section II of this report. Of this amount, $8 million
was restricted and $103 million was
unrestricted.
Cash Balances & Trailing Revenue: The cash balances recovered by the Receiver shortly following his
appointment on February 17, 2009 totaled
approximately $63.1 million. In addition, the Receivership has collected
roughly $5.3 million in cash associated with income earned prior to the
inception of the Receivership.
Private Equity: The Receiver has
recovered approximately $37.5 million in net cash proceeds from the liquidation
of private equity investments and expects to receive approximately $300,000
more from closed or pending private equity liquidations. In addition, the
Receiver’s financial advisor is continuing to market the remaining investments in
Stanford’s private equity portfolio, which has an estimated value of up to $6.7
million.
Real Estate: The Receiver has
recovered approximately $18.7 million in net cash proceeds from the liquidation
of real estate, including the recent Holly Springs
Watercraft and Airplanes: The Receiver has recovered approximately $8.0 million from the
disposition of airplanes owned or leased by Stanford and from the sales of the
Sea Eagle yacht, the Little Eagle yacht, and the Robust Eagle tugboat.
Latin American Assets: The Receiver
has been able to liquidate assets in Panama Ecuador Peru
Miscellaneous Asset Sales: The Receiver has recovered approximately $2.2 million from the sale of
miscellaneous assets — including, but not limited to, furniture, coins,
vehicles, and assorted equipment.
Litigation: The Receiver has
fraudulent-transfer, unjust-enrichment, and other claims pending against
numerous defendants, through which the Receiver seeks the recovery of
approximately $700 million. The Receiver has identified at least an additional $1.1 million in
international litigation claims. Asset recovery litigation is difficult,
protracted, and expensive.
Nevertheless, such claims are the single largest potential source of
funds which may be recovered for the benefit of Stanford’s victims. Although
the Receiver has thus far received approximately $15.5 million from settlements and other litigation efforts
(including over $2.2 million received from the political committee defendants
in Case No. 3:10-CV-0346-N) and has secured an injunction to hold another
approximately $25 million, the amount that the Receiver ultimately is able to
collect from defendants is uncertain and may be less than the amounts claimed.
The Receiver will continue to work towards appropriate and reasonable
settlements, where possible, in order to maximize the net recovery to the
Receivership Estate. A detailed report regarding the status of the Receiver’s
many litigation claims is found in the Third Joint Report of the Receiver, the
Examiner and the Investors Committee Concerning Pending Litigation (For the
Quarter Ending September 30, 2012) [see Doc. 1716], and related
litigation issues are discussed in the Report of the Examiner and Receiver
Addressing Matters Assigned to Magistrate Judge Frost [see Doc. 1720].
Return of Political Contributions: The Receiver has identified approximately $1.9 million in political
contributions made by Allen Stanford and related entities. The Receiver has
requested the return of these contributions from over 90 politicians, political
action committees, and congressional committees. Through January 31, 2013 , $1,770,380 has been returned (including the principal amount of the
contributions that were part of the over $2.2 million received from the
political committee defendants discussed above).
Coins and Bullion Inventory: The Receiver has approximately $200,000 in remaining coins and bullion
inventory relating to the coins and bullion operations.
Overseas Cash: The Receiver has
identified approximately $310 million in cash, assets, and other investments in
foreign accounts, including accounts in Canada United Kingdom Switzerland Antigua in an effort to
reach agreement concerning the release and distribution of these assets.
Other Inflows & Assets: The Receivership has collected approximately $66.8 million through the liquidation
of other investment accounts held on behalf of Stanford, including
approximately $5.0 million held on behalf of Stanford Trust Company; $1.0
million from the liquidation of Bank of Antigua accounts; $46.7 million through
the liquidation of Stanford accounts at Pershing and of various investment
funds held on Stanford’s behalf; $8.4 million through the recovery of
additional cash balances; and $5.7 million received via other inflows,
including, but not limited to, rental and interest income, cash flows from
other liquidated bank accounts, and restricted funds and interest thereon. The
Receiver estimates that he may recover up to $2.5 million in additional assets held in U.S.
II. CASH
OUTFLOWS
From February 17, 2009 through January 31, 2013 , the total amount of Receivership cash outflows — comprising
professional fees and expenses, as well as other types of expenses — was
approximately $119.2 million.
Expenses Other than Professional Fees: The total amount of all payments made by the Receiver for expenses other
than professional fees was approximately $53.3 million. This figure comprises
the following approximate amounts: $26.7 million in personnel expenses and
other employee expenses; $3.8 million in insurance expenses; $3.5 million in
taxes; $1.6 million in general and administrative expenses; $2.4 million in
telecommunications expenses; $5.2 million in occupancy expenses; $2.5 million
in settled claims; and $7.7 million in other expenses. As previously explained
in the Fourth Interim Report [see Doc. 1630 at 5-7], these expenses have
decreased dramatically as the Receivership has progressed.
Professional Fees and Expenses:
As of January 31, 2013 , the professional fees and expenses paid to the Receiver and his
professionals total approximately $63.3 million.
Approximately half of this amount was paid in the first year of the
Receivership ($30.9 million from the first quarter of 2009 through the first
quarter of 2010) to wind down operations and institute necessary legal actions
to protect and benefit the Estate.
Furthermore, the Receivership Estate has paid
(per Court approval) the Examiner’s expenses and legal fees totaling
approximately $1.9 million through Source: http://sivg.org/article/2013_Receiver_Fifth_Interim_Report.html
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