The Advocate is reporting that Baton Rouge attorney Phil Preis yesterday told federal judges in Dallas and New Orleans he will fight a court officer’s efforts to increase losses his more than 60 clients suffered at Stanford International Bank.
The court appointed receiver is trying to recover, or claw back, about $300 million in frozen investor accounts in the United States and another $600 million U.S. investors withdrew from the bogus CD accounts before the SEC stepped in and shut the company down in February. His argument is that he wants to pool the funds and distribute them to all investors. Preis, however, sees the issue quite differently and says it could further devastate investors already suffering losses.
Preis said he filed court notice of a cross appeal that will argue investors who lost money to Stanford should not be subject to demands for any of their remaining assets.
Neither the interest nor the principal should be “subject to Janvey’s clawback if you’re a net loser,” Preis explained.
Read more on Preis' argument here.