CRT Offer to Buy Stanford International Bank Investor Claims

(Caracas, November 26 - Noticias24) -. CRT Special Investments announced Tuesday through a press release that it would buy claims from Stanford International Bank (SIB) to investors, who can "receive their money within weeks instead of having to wait years and face the uncertainty of recovery, "said Joe Sarachek, General Director of the CRT.

 Following is the full text of the statement: http://sivg.org/forum/view_topic.php?t=eng&id=165

Participante líder en la venta y compra de reclamos de Stanford Proporcionando a Vendedores(Inversionistas) Liquidez Garantizada

Nueva York, Nueva York, noviembre de 2013 – CRT Special Investments LLC (” CRT Special Investments “) ha anunciado hoy que está enfocado en proporcionar liquidez a los ex depositantes de Stanford International Bank en América Latina con un staff dedicado de habla hispana y cuenta con sitio web.

Stanford International Bank (” SIB “) era un banco con sede en Antigua, que operó desde 1986 hasta el 2009, con sede en Houston, Texas. Los depositantes de SIB recibieron certificados de depósito. Aproximadamente $ 7 mil millones fueron depositados en SIB. En febrero del 2009, la Securities and Exchange Commission de los EE.UU. obtuvo una orden para congelar todos los activos personales y corporativos de Stanford en los EE.UU. y un receptor para Stanford. Hasta la fecha, aproximadamente $ 500 millones en activos líquidos han sido identificados por el Síndico y Liquidadores Conjuntos, dejando a los ahorradores con una pérdida substancial proyectada.

El Administrador Judicial ha comenzado recientemente a hacer una distribución del 1 % a los inversionistas, pero más distribuciones son inciertas.

Un procedimiento paralelo al procedimiento de EE.UU. se inició en febrero de 2009 en Antigua. Los depositantes también han presentado reclamos con Grant Thornton, que ha sido designado como Liquidador Conjunto en Antigua. Hasta la fecha, ninguna distribución se ha realizado en Antigua. Debido al hecho de que no se sabe cuándo se harán nuevas distribuciones o el momento de la distribución, los depositantes que buscan liquidez se enfrentan a la elección de la venta de los compradores en el mercado secundario.

El proceso de transferencia de reclamos es extremadamente lento, ya que requiere la presentación de documentos en dos jurisdicciones separadas, Dallas y Antigua. “Ninguna otra compañía tiene la experiencia y la dedicación para el mercado de América Latina en Stanford “, dijo Joe Sarachek , Director General de la CRT Special Investments. “Nuestro objetivo es proporcionar recuperación garantizada y liquidez para los clientes de Stanford lo más rápido posible. ” Sarachek añadió ” Si usted vende su reclamo a CRT, usted podrá recibir su dinero en cuestión de semanas en lugar de tener que esperar años y enfrentarse a la incertidumbre de la recuperación. ”

CRT Special Investments, ha sido un participante líder en el mercado de reclamos de Stanford , cuenta con la experiencia y conocimiento del mercado , no sólo para ofrecer liquidez a los clientes que buscan vender , sino también para estructurar préstamos y negociaciones para aquellos clientes que aún no están listos para vender sus reclamos. CRT Special Investments es una filial de CRT Capital Group LLC ( “CRT “), una sociedad de valores con sede en Stamford , Connecticut, EUA que ha mantenido a los clientes institucionales desde hace más de 20 años. CRT proporciona investigación a profundidad sobre el procedimiento de quiebra de MF Global y compra venta de reclamos.

For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group - SIVG official forum http://sivg.org

Stanford Victim Penny-a-Dollar Payment Plan Goes to Judge

R. Allen Stanford’s investors may recoup some of their losses more than four years after the Stanford Group Co. founder was sued by the U.S. Securities and Exchange Commission and put out of business.
Ralph Janvey, the receiver appointed by a federal judge in 2009 to marshal and liquidate Stanford’s personal and business assets, today asked permission to make a $55 million interim distribution to about 17,000 claimants, or about 1 cent for each of the $5.1 billion lost in the fraud scheme.
“We will follow it up in a subsequent distribution as the money comes in,” Janvey’s attorney, Kevin Sadler of Baker Botts LLP, told U.S. District Judge David Godbey today in Dallas.
The proposed payout would trail the more than $5.4 billion paid to victims of Bernard L. Madoff, who was arrested in December 2008; about $4.9 billion paid clients of the MF Global Inc. brokerage after its parent MF Global Holdings Ltd. failed in October 2011; and the $123 million interim distribution for victims of Peregrine Financial Group Inc. founder Russell Wasendorf, who prosecutors last year said stole $215 million.
“No distribution plan can satisfy every claimant,” Janvey’s lawyers said in a Feb. 12 court filing. “But the receiver’s interim plan, which drew only three objections from thousands of claimants, comes remarkably close.”
Cross-Border Protocol
Godbey didn’t rule today on Janvey’s bid for payment plan approval. The judge granted a request to approve the Cross- Border Protocol, a cooperation agreement between the Dallas court-appointed receivership and U.S. authorities on one side, and Antiguan court-appointed liquidators of Stanford assets outside the U.S. on the other. That approval could boost investors’ final recovery.
“The court finds the motion to be well-taken,” Godbey said in a two-page order. He heard more than two hours of argument this morning.
A federal jury in Houston last year found Stanford, 63, guilty of lying to investors about the nature and oversight of certificates of deposit issued by his Antigua-based bank. The jurors decided he must forfeit $330 million in accounts seized by the U.S. government.
Sentenced to 110 years in federal prison, Stanford has appealed the verdict.
Godbey today asked Sadler whether it was proper to distribute Stanford’s money before entering a final order in the SEC case against the financier and his businesses.
No Precedent
No legal precedent requires Godbey to first issue such a ruling, Janvey’s lawyer replied. He also told the judge that in a prior decision he said “not a nickel” of the money recovered by the receiver from Stanford entities was not taken by fraud.
One objection to the payout plan came from the law firm Curtis, Mallet-Prevost, Colt & Mosle LLP. A lawyer for the firm, Myles Bartley, told the judge today that it’s owed $1.4 million for work done for Stanford entities and isn’t included in the first group of distributions.
Sadler said there would be enough funds to resolve those claims even if the judge approved the proposed payment plan.
In an e-mailed statement, Sadler called the judge’s ruling today “a significant milestone” in the receivership’s effort to get money to Stanford fraud victims.
Godbey’s order requires the Janvey receivership and the Antiguan liquidators to “perform in accordance with their rights and obligations as outlined in the settlement agreement.”
Long Dispute
Lawyers for both factions battled for months for control of $300 million of Stanford assets outside the U.S.
“So long as it continues, millions of dollars in assets that could otherwise be distributed to victims of the Stanford Ponzi scheme will remain tied up in the courts,” Sadler told Godbey in a filing last month.
The liquidators, Grant Thornton International Ltd. accountants Hugh Dickson and Marcus Wide, joined in the approval request through a separate filing.
For dropping their dispute with Janvey and the U.S. Justice Department, the Antiguan liquidators will receive fees of $36 million from Stanford’s frozen funds in the U.K., according to a statement jointly released by both receivers on March 12. The Antiguan liquidators already have received $20 million from the U.K. accounts.
About $23 million in Canadian funds and $132.5 million in Swiss funds will be transferred to the Justice Department and Janvey for distribution to investors through a system the U.S. receiver is establishing, according to the joint statement.
‘Ransom’ Payment
Angie Shaw, a founder of the Stanford Victims Coalition, has denounced the agreement as “ransom” that rewards the Antiguan liquidators at the investors’ expense.
“There is no Plan B,” Sadler told the judge.
Edward H. Davis Jr., an attorney for the liquidators, told Godbey today that an Antiguan court approved the agreement this week.
He said the agreement funds a “war chest” for the liquidators to further pursue lawsuits.
“The Joint Liquidators are pleased to have obtained the approval of the settlement from the High Court in Antigua this past Monday,” Davis said today in an e-mailed statement.
Attorneys representing law firms already defending suits filed by Janvey in the U.S. objected to the accord, arguing that it would result in more litigation offshore.
“There is obviously a jurisdictional issue,” Godbey said. “There is no getting around it.”
Fees Paid
Janvey’s professionals had been paid $63.3 million in fees and expenses as of Feb. 7, according to his most recent status report. That represents about a quarter of the $230.2 million Janvey has recovered for the estate. He has paid out $53.3 million more in costs to wind up Stanford’s business interests.
Shaw couldn’t immediately be reached for comment on Godbey’s ruling this afternoon. Peter Morgenstern, an attorney who serves on the official Stanford Investors Committee, also didn’t immediately reply to voice-mail and e-mail requests for comment.
An additional $4.1 million in Stanford-related assets have been identified in an account held by Pershing LLC, according to a court filing by Sadler yesterday seeking an order for the turnover of those funds.
The SEC case is Securities and Exchange Commission v. Stanford International Bank, 09-cv-00298, U.S. District Court, Northern District of Texas (Dallas). The criminal case is U.S. v. Stanford, 09-cr-00342, U.S. District Court, Southern District of Texas (Houston).

Source: http://sivg.org/forum/view_topic.php?t=eng&id=58

For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group - SIVG official forum http://sivg.org/forum/

Allen Stanford Investors May Get Some Money Back

Investors in Allen Stanford's $7 billion Ponzi scheme, who have recovered nothing in the four years since it blew up, could finally get some money back under a $300 million multi-national settlement in the case.

For years, investors, attorneys and regulators have been wrangling over Stanford assets frozen in Canada, Switzerland and the United Kingdom. The complex settlement, still subject to court approval in five countries, would clear the way for most of the $300 million to be distributed to investors later this year.

The agreement was announced Tuesday by the court-appointed receiver in the U.S. and by liquidators appointed by the court in Antigua, where Stanford's offshore bank was based. The U.S. Justice Department and the Securities and Exchange Commission are also part of the settlement.

(Read More: Allen Stanford: Descent from Billionaire to Inmate # 35017-183)

"The Settlement Agreement is a product of the parties' common goal of optimizing and enlarging the overall recovery for creditor-victims as quickly and cost-effectively as possible. The parties to the Agreement all believe that the Agreement is in the best interests of the victims of the Stanford fraud," the receiver and liquidators said in a joint statement.

(Read More: Allen Stanford Investors Face Long Haul to Recover Money.)

According to the statement, the agreement ensures the money will go to victims—not to the IRS or the Antiguan government.

The agreement, while significant, would still leave Stanford's 28,000 investors with devastating losses. Since the Securities and Exchange Commission shut down Stanford's financial empire in February, 2009, none of the $7 billion in Stanford assets has been returned to investors.

Last year, the U.S. receiver asked for court approval to distribute some $55 million, and is still awaiting court approval. The new settlement would be on top of that. Another $700 million is still tied up in litigation.

(Read More: Allen Stanford Investors Could Get (Tiny) Payout)

Authorities said Allen Stanford skimmed most of the investors' money to fund his lavish lifestyle. Stanford, who is serving a 110-year sentence at a federal penitentiary in Florida, is appealing his conviction last year on 13 criminal counts.



For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group - SIVG official forum http://sivg.org/forum/

Stanford U.S. Receiver Has Deal With Antigua Counterpart

R. Allen Stanford’s Antiguan- appointed liquidators agreed to stop seeking control of the convicted financier’s assets in a deal that may allow defrauded investors to recover some of the $300 million Stanford stashed in accounts outside the U.S.
Receivers appointed by the U.S. and the Antiguan courts have battled for four years to control assets recovered from Stanford’s financial-services empire. Stanford, 62, was convicted last March of leading a $7 billion investment fraud based on bogus certificates of deposit at his Antigua-based bank. He was sentenced to 110 years in prison.
“The funds that are the subject of this agreement represent the largest available source of investor money that Allen Stanford had not already spent by the time his Ponzi scheme collapsed,” Kevin Sadler, lead attorney for U.S. receiver Ralph Janvey, said in an e-mail today. “In the absence of this agreement, these funds would remain out of reach of the Stanford victims for years to come.”
For dropping their dispute with Janvey and the U.S. Justice Department, the Antiguan liquidators will receive fees of $36 million from Stanford’s frozen funds in the U.K., according to a statement jointly released by both receivers today.

Professional Fees

The Antiguan liquidators have already received $20 million from the U.K. accounts, so the additional payment will boost their professional fees to $56 million -- almost as much as Janvey’s receivership team has been paid since U.S. securities regulators seized Stanford’s operations in February 2009.
Janvey’s professionals had been paid $63.3 million in fees and expenses as of Feb. 7, according to his latest status report. That represents about a quarter of the $230.2 million Janvey has recovered for the estate. He has paid out an additional $53.3 million in costs to wind up Stanford’s business interests.
Janvey recently proposed a $50 million interim distribution be paid to investors, pending court approval.
Angie Shaw, a founder of the Stanford Victims Coalition, denounced the agreement as “ransom” that rewards the Antiguan liquidators at the investors’ expense.
“While the agreement does end a four-year international turf war that has cost the victims untold millions of dollars, the only true beneficiary of the agreement is the Antiguan liquidators,” Shaw said in an e-mail today. “The Antiguan liquidators are essentially getting a ransom fee in exchange for dropping their litigation for control over the frozen foreign accounts holding what is left of the victims’ life savings.”

Dallas Judge

While Janvey was awarded control over all Stanford assets by the Dallas judge in charge of the U.S. Securities and Exchange Commission case against Stanford, courts in the U.K., Switzerland and Canada initially awarded control of about $320 million in foreign accounts to Antiguan court-appointed liquidators Marcus Wide and Hugh Dickson of Grant Thornton.
The Justice Department placed an administrative hold on the European funds, and it has been trying to repatriate the money since Stanford and his co-conspirators were convicted last year.
The Antiguan liquidators have fought to retain control and have filed some asset-recovery lawsuits that duplicate actions already initiated by Janvey, according to court filings. Wide and Dickson haven’t publicly stated how much they’ve been able to recover for Stanford’s investors.

Stanford Victims

Edward H. Davis Jr., one of the Antiguan liquidators’ attorneys, said in an e-mail today that Dickson and Wide have already recovered and frozen more than $227 million in Stanford assets “independent of the amounts recovered by Janvey and in addition to the approximately $300 million frozen” in overseas accounts.
“The joint liquidators have conducted intensive investigations and lodged claims and are in the process of launching additional lawsuits that have the potential to yield billions of dollars in recoveries to pay the victim creditors,” Davis said. “To suggest that the joint liquidators held the estate for ransom demonstrates a fundamental misunderstanding about how a liquidation process maximizes recoveries for victim creditors.”
Peter Morgenstern, a lawyer who sits on the Official Stanford Investors Committee, said the investors should be allowed to decide whether the Antiguan liquidators receive more fees or whether the U.S. government should continue fighting to recover Stanford’s frozen European funds through international accords designed to recover criminal proceeds.

‘Significant Assets’

“The issue is how significant assets recovered by the U.S. government for the benefit of Stanford victims should be spent,” Morgenstern said in an e-mail. Much as creditors have a say in how bankruptcy proceeds are distributed, he said, the defrauded investors should also be consulted before such a large part of the estate is paid in professional fees.
Janvey has asked U.S. District Judge David Godbey in Dallas to hold a hearing at which investors can express their opinions of the deal. No hearing has been set.
Under terms of the agreement announced today, the Antiguan liquidators will distribute the $44 million remaining in the U.K. accounts to investors after the liquidators have received their $36 million in working capital. Wide and Dickson will also distribute about $60.5 million of the funds currently frozen in Switzerland, according to the joint statement.

Fund Transfers

About $23 million in Canadian funds and $132.5 million in Swiss funds will be transferred to the Justice Department and Janvey for distribution to investors through a system the U.S. receiver is establishing, according to the joint statement.
The agreement “creates a plan for the distribution of almost 90 percent of the frozen assets from the U.K., Canada and Switzerland pursuant to which distributions will be made as soon as the necessary approvals are obtained from the pertinent authorities in those countries,” the Antiguan liquidators said in the joint statement.
Courts in the U.S., Antigua and the U.K. must still sign off on the deal before any funds are transferred, according to the statement.
Sadler, the U.S. receiver’s attorney, said the deal was the result of months of negotiations involving officials in five nations.
“This agreement is one of the most complex undertakings of its kind,” he said in an e-mail. “This was no easy task.”
The criminal case is U.S. v. Stanford, 09-cr-00342, U.S. District Court, Southern District of Texas (Houston). The SEC case is Securities and Exchange Commission v. Stanford International Bank, 09-cv-00298, U.S. District Court, Northern District of Texas (Dallas).

For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group - SIVG official forum http://sivg.org/forum/

Stanford Investors Sue Antigua, Caribbean Central Bank

By Laurel Brubaker Calkins - Feb 18, 2013 8:39 PM GMT+0100
R. Allen Stanford’s receiver and investors’ committee sued Antigua, the Eastern Caribbean Central Bank and 23 former Stanford Financial Group Co. executives over allegations they aided the financier’s $7 billion fraud.

The Official Stanford Investors Committee seeks repayment of at least $90 million in documented loans Stanford made to the dual-island nation of Antigua and Barbuda and accuses its elected officials of having been “Stanford’s partners in crime.” The nation’s leaders shielded Stanford’s scheme and traded choice real estate for as much as $230 million in loans that haven’t been repaid, according to the lawsuit.

“Antigua knowingly provided necessary assistance to Stanford’s $7 billion Ponzi scheme and, in exchange, received millions of dollars in loans whose repayment terms Stanford did not enforce,’’ the committee said in a complaint filed in Dallas federal court on Feb. 15. “For well over a decade, Antigua was a prime participant in, and beneficiary of, the Stanford Ponzi scheme, and actively protected and shielded Stanford’s criminal enterprise from real regulatory scrutiny.’’

Stanford, 62, was convicted in March of masterminding a Ponzi scheme that defrauded investors through the sale of bogus certificates of deposit at his Antigua-based Stanford International Bank Ltd. He is serving a 110-year sentence in a Florida federal prison as he appeals his verdict and sentence.

Falsified Audits
Evidence at Stanford’s trial showed he bribed Antiguan banking regulator Leroy King to falsify audits certifying the bank’s investment returns and mislead U.S. securities regulators investigating the former Texas billionaire’s operations. Stanford was also allowed to underwrite and participate in banking reform legislation that Antigua claimed had cleaned up its corrupt offshore banking industry, according to trial evidence. Antigua has so far failed to extradite King to face criminal charges in the U.S.

The investors on Feb. 15 separately sued the Eastern Caribbean Central Bank, which nationalized Stanford’s other island financial institution, the Bank of Antigua, after the U.S. Securities and Exchange Commission seized Stanford’s enterprise on suspicion of fraud in February 2009.

The ECCB in turn parceled out ownership in the bank to the government of Antigua and to other Caribbean banks in what the investors called “a second act of brazen thievery.” The head of ECCB’s monetary council at the time was Antiguan Minister of Finance Errol Cort, who was both King’s supervisor and one of Stanford’s personal attorneys, according to court papers.


‘Rightful Owners’
“The considerable value of the Bank of Antigua, believed to be in the tens or hundreds of millions of dollars, should be distributed as compensation to its rightful owners, Stanford’s victims and creditors,’’ the committee said in court papers.

Recent comments by Antiguan elected officials indicate the country intends to repay the bank instead of the defrauded investors, Peter D. Morgenstern, a lawyer for the investors’ committee, wrote, meaning that “in essence, Antigua intends to use CD investors’ money to pay itself.’’

Tom Bayko, Antigua’s attorney, didn’t immediately respond to voice or e-mail messages seeking comment on the lawsuit. In an earlier suit, Bayko said Antigua was protected from such litigation by foreign sovereign immunity.

Officials at the ECCB didn’t immediately return telephone or e-mail messages seeking comment on the lawsuit.

Ralph Janvey, Stanford’s court-appointed receiver, filed another lawsuit on Feb. 15 claiming breach of fiduciary duty lawsuit by 23 former directors and officers of Stanford’s operations, including three executives convicted of furthering the fraud scheme. The suit seeks return of all compensation from these individuals, some of whom have been previously sued by the receiver on similar claims.

“Many directors and officers simply looked the other way, while others actively assisted Stanford in defrauding thousands of people out of billions of dollars,’’ Kevin Sadler, Janvey’s lead lawyer, said in the filing in Dallas federal court. They “put their continued employment and substantial compensation ahead of the best interests of the entities they were hired to serve,” he said.

The cases are The Official Stanford Investors Committee v. Antigua and Barbuda, 3:13-cv-0760; The Official Stanford Investors Committee v. Bank of Antigua, 3:13-cv-0762; Janvey v. Alvarado, 3:13-cv-0775. All are in U.S. District Court, Northern District of Texas (Dallas).

The main criminal case is U.S. v. Stanford, 09-cr-342, U.S. District Court, Southern District of Texas (Houston).

Read more: http://sivg.org/article/2013_Stanford_Investors_Sue_Antigua_Caribbean_Central_Bank.html

For a full and open debate on the Stanford Receivership visit the Stanford International Victims Group - SIVG official forum http://sivg.org/forum/

The District Court Rules in Favor of the Receiver in His Claim to Recover Net Winnings Paid to Stanford "Net Winner" Investors

January 23, 2013
By U.S. Receiver (Ralph Janvey)

On January 23, 2013, the District Court entered a summary judgment order in favor of the Receiver finding that the Receiver is entitled to recover from Stanford investors any funds they were paid in excess of the principal they deposited in the Stanford fraud scheme. The Court ruled that the net winner investors' contracts with Stanford are void and unenforceable and that the investors did not provide value for amounts they received from Stanford in excess of the amounts they deposited. As a result, the Court held that that allowing the net winner investors "to keep their fraudulent above-market returns in addition to their principal would simply further victimize the true Stanford victims, whose money paid the fraudulent interest." Although the District Court's order is not a final judgment, the District Court certified the order for appeal, which means that it will likely be appealed in the near future to the US Court of Appeals for the Fifth Circuit.

The Receiver is pleased with the Court's ruling today that those investors who profited from the Stanford ponzi scheme do not have the right to retain those profits. This decision represents an important milestone in the very long and difficult process of unwinding the massive Stanford ponzi scheme. In his ruling, Judge Godbey agreed with the Receiver's position that the fictitious interest payments that Stanford made to investors on their Stanford International Bank certificates of deposit simply represented money taken from one set of investors and paid to another; it was just part of Stanford's efforts that kept the ponzi scheme going for well over a decade.

Based on his investigation, the Receiver identified over $220 million in net winnings or fictitious interest that was paid to over 800 investors. The Receiver intends to use this ruling to pursue recovery of these funds for the benefit of the thousands of investors who sustained significant losses on their Stanford CDs. Once recovered, these funds can be distributed to the victims of the Stanford fraud, which would be in addition to the $55 million that the Receiver has already proposed for distribution.

The Receiver is continuing to pursue recovery through litigation of other funds that can be distributed to victims, and he continues to work cooperatively with the U.S. Department of Justice and the Antiguan-appointed Liquidators to reach a final agreement to make available for distribution approximately $300 million in funds and assets currently frozen in foreign countries.

Read more: http://sivg.org/article/2013_Claim_Net_Winnings_Investors.html

For a full and open debate on the Stanford Receivership visit the SIVG official forum http://sivg.org/forum/          

STANFORD PONZI SCHEME VICTIMS TO RECOVER ONE PERCENT OF LOSSES

January 11, 2013
By U.S. Receiver (Ralph Janvey)

The Receiver requests that the Court order a first interim distribution of funds from the Receivership Estate for the benefit of defrauded investors in certificates of deposit ("CDs") issued by Stanford International Bank, Ltd. ("SIB"). These investors were the primary source of both the funds that fueled the Stanford Ponzi scheme and the funds recovered by the Receiver. They are also the primary victims of the Stanford fraud by both value and number of claims.

Treatment of Claims under the Interim Plan.

1. The Interim Distribution Amount shall be apportioned among Investor CD Claimants on a pro rata basis. Such Investor CD Claimants shall receive payments equal to a percentage (the "Distribution Percentage") of their Allowed Claim Amounts as reflected in their Notices of Determination. The Allowed Claim Amounts shall be based on the Investor CD Claimants' Net Losses. Any future distributions to Investor CD Claimants shall likewise be pro rata based on Investor CD Claimants' Allowed Claim Amounts.

2. The Distribution Percentage equals the Interim Distribution Amount divided by the sum of: (a) all Allowed Claim Amounts for non-deficient Investor CD Claims as of the filing of the Motion (the "Investors' Allowed Claim Amounts"), and (b) the Receiver's estimate of the Allowed Claim Amounts for all Investor CD Claims that are deficient (the "Investors' Deficient Claim Amounts"). The Distribution Percentage can be represented mathematically as:

Interim Distribution Amount
____________________________________________________________
(Investors' Allowed Claim Amounts) + (Investors' Deficient Claim Amounts)

3. As of January 2, 2012, the aggregate of the Investors' Allowed Claim Amounts equaled $4,237,737,851.75, and the aggregate of the Investors' Deficient Claim Amounts equaled $893,487,080.90. The Distribution Percentage, therefore, is calculated as follows:

$55,000,000.00
________________________ = 1%
$5,131,224,932.65

4. Investor CD Claimants will receive distributions under the Interim Plan equal to their Allowed Claim Amounts as reflected in their Notices of Determination multiplied by the Distribution Percentage. The amount of a given Investor CD Claimant's interim distribution can be represented mathematically as:

(Particular investor's Allowed Claim Amount) x (Distribution Percentage)

5. If an Investor CD Claimant serves and files a timely objection to a Notice of Determination, the Investor CD Claimant is not disqualified from receiving a distribution under the Interim Plan. However, the Investor CD Claimant shall participate in this interim distribution based initially on the original Allowed Claim Amount in the Notice of Determination. If the Investor CD Claimant ultimately succeeds in increasing the Allowed Claim Amount (either by stipulation with the Receiver or by Court order sustaining the Investor CD Claimant's objection), the claimant shall receive a supplemental payment representing 1% of the difference between the Allowed Claim Amount in the Notice of Determination and the Allowed Claim Amount after final resolution of the claimant's objection.

6. To the extent a claimant receives one or more collateral recoveries, the Receiver will reduce payments to such a claimant to the extent necessary to ensure that all the Investor CD Claimants are treated equally with respect to the percentage of their Allowed Claim Amounts they recover from all sources as of the date of the payments.

7. Each Investor CD Claimant's interim distribution shall be based solely on his Investor CD Claims and not on his other types of Claims, if any.

8. Nothing in this Order shall preclude future distributions to Investor CD Claimants or other Claimants under a different plan. Nor shall anything in this Order restrict the Receiver's authority to compromise and settle any Claim, or resolve any objection to a determination, at any time, as appropriate, without further order of this Court.

Read more: http://sivg.org/article/2013_stanford_victims_to_recover_1_percent.html

For a full and open debate on the Stanford Receivership visit the SIVG official forum http://sivg.org/forum/