Law firms in the Netherlands Antilles and Aruba give legal assistance to victims in Stanford fraud

March 03, 2009 3:49 AM

US billionaire Allen Stanford has been accused of fraud by the US Securities and Exchange Commission (SEC). According to the SEC, Stanford International Bank domiciled on the island of Antigua sold roughly $8 Billion of “so-called” ‘certificates of deposit’ to investors by promising improbable and unsubstantiated high interest rates.

A Judge of the United States District Court for the Northern Texas has frozen assets of Stanford Financial Group, of which Stanford International Bank forms part. A Receiver has been appointed to perform all acts necessary to conserve, hold, manage and preserve the value of the Assets. At the moment only
$ 250 million has been located by the Receiver. This was stated by an FBI agent during the court hearing for Stanford Financial’s Chief Investment Officer.

Investors all over the world have been misled. Estimated is that as much as three-quarters of the $8 billion worth of certificates have been bought by Latin American citizens and companies. Law firms across the region have been investigating possibilities in taking legal actions for their clients. Cooperation with attorneys in other jurisdictions is expected as well as the use of networks such as the Lex Mundi global network of law firms to coordinate efforts across borders. Many investors are also from Aruba and to a lesser extend the Netherlands Antilles. In Aruba the Stanford Group has a presence in the form of group company called Stanford Group Aruba N.V. It is yet uncertain what the status and purpose of this company is. A representative of Stanford Group Aruba N.V. stated that SGA is not a bank but an investment advisory company. However, according to its object clause one of its tasks is to observe the interests of shareholders, bond holders or other creditors in companies or groups thereof. Another task is to issue certificates or shares.

Several Netherlands Antilles and Aruba law firms have been approached for legal assistance. At the moment HBN Law, VanEps Kunneman VanDoorne, Soliana, Bonapart & Aardenburg, Spigthoff, and Gomez & Bikker (Aruba), are known to act on behalf of investors.

2 March, 2009