Receiver, Stanford Execs Fight Over $50M D&O Policy

Receiver, Stanford Execs Fight Over $50M D&O Policy - 7/24/2009

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2009 News and Press Releases

SEARCH

News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Receiver, Stanford Execs Fight Over $50M D&O Policy
Pete Brush

Securities Law 360. July 24, 2009
_________________________________________________________________________

EXCERPT: Two Stanford Group Co. senior vice presidents, named by federal authorities as relief defendants in a civil case accusing Stanford International Bank Ltd. and its top brass of running an $8 billion Ponzi scheme, are the latest to join in a fight over $50 million in potential insurance proceeds, to which receiver Ralph S. Janvey has made a claim. Thursday's motion, filed by Carlos A. "Tony" Perez and Manuel Malvaez in the U.S. District Court for the Northern District of Texas, seeks an order allowing them to intervene to join Laura Pendergest-Holt’s bid for a ruling protecting proceeds from a directors and officers policy from the receivership estate. Holt, one of three executives aside from bank principal Robert Allen Stanford facing criminal charges in connection with the alleged conspiracy to defraud investors, filed a motion on June 30 seeking clarification that insurance underwriters may pay defense costs and expenses. "On the eve of the underwriters’ first payment of defense costs for defendant Laura Pendergest-Holt, the receiver for the first time has claimed an interest in the D&O policies, threatening the underwriters with a contempt action for merely following through on their contractual obligation to advance defense costs," her motion says. Stanford himself, and other defendants in the civil case, also have joined Holt's motion. In a reply to Holt's motion, filed July 16, Janvey says Holt and the other movants seek "unrestricted access to the entire proceeds of [D&O] liability insurance policy underwritten by Lloyd's of London with limits of at least $50 million" and says such unfettered access is not supported by law and would be unfair to thousands of people who have claims against the Stanford entities.

Back to News page | Back to Archived News 2009 page | Back to Top

�