The ATP has asked a federal court to force the receiver overseeing the close of Allen Stanford’s affairs to pay the tour $1.81 million, the amount on which the tour says Stanford defrauded the circuit.
Since 2009, when the U.S. Securities and Exchange Commission sued Stanford for allegedly running a Ponzi scheme, court-appointed receiver Ralph Janvey has overseen the process of compensating victims.
Stanford Financial Group was a sponsor of the ATP, and the tour had certificates of deposits with the now-disgraced financier. The ATP contends it purchased $5.25 million in CDs between 2006 and 2008 but only withdrew $3.44 million before the alleged Ponzi scheme collapsed.
At the same time, Janvey is trying to get back sponsorship dollars paid to the ATP by Stanford. Janvey cited that effort in a court paper in March for denying the ATP’s request for the $1.81 million.
In a court filing last week, the ATP responded, “The Receiver’s fraudulent transfer and unjust enrichment allegations against ATP in the separate Clawback Action have no bearing on the validity and determination of the ATP CD Claim.”
Stanford was convicted last year and sentenced to 110 years in jail for defrauding his clients of $7 billion through a Ponzi scheme.
The case is SEC v. Stanford International Bank in federal court in Dallas.