CaribWorldNews, HOUSTON, Texas, Tues. May 19, 2009: How much does it cost for a court-appointed receiver to take control of a billion dollar empire?
Try $19.9 million. The Dallas-based law firm of Krage & Janvey, the court-appointed receiver in the $8 billion Allen Stanford Ponzi claim case, on Friday submitted the bill to the court, according to the Houston Chronicle.
Krage & Janvey’s bills total about $560,000, court records show. But other costs, according to the filing, include the services of lawyers from Baker Botts, who have apparently been used to track down Stanford’s assets around the world; prepare claw back suits that could net as much as $300 million; and keep Stanford’s assets safe from liquidators around the world and investors seeking to get their money back immediately. Their costs are $5.9 million.
Thompson & Knight, which is helping the receiver dispose of Stanford’s offices and deal with foreign investors, has billed for $1.8 million in legal fees. Other costs include more than $6.6 million for forensic accounting firm FTI; and more than $164,000 in fees and expenses for public relations firm Pierpont Communications Inc, the court papers said.
So far, however, the fee application says the lawyers have tracked down $70 million in cash in an account the receiver now controls and an estimated $300 million more in cash located in non-U.S. accounts.
The SEC, Stanford and a court appointed examiner oppose the receiver’s motion, according to the filing.