In a Friday night massacre, the Court-appointed Receiver for Stanford Financial Group laid off 1,000 Stanford employees in the U.S., representing about 85% of its domestic work force.
Stanford Financial Group and its billionaire CEO Robert Allen Stanford are at the center of a Securities and Exchange Commission investigation alleging the orchestration of an $8 billion fraud involving phony certificates of deposit and a fraudulent mutual fund wrap program.
On Wednesday last week, Receiver Mark Janvey hinted at the possibility that Stanford Financial Group would move in to Bankruptcy court when he said, “The company has a serious liquidity problem and tens of millions of dollars in unpaid bills. I don’t believe we’ll find billions of dollars in assets.”
Janvey’s office would not comment when asked if he would try to liquidate Stanford assets through bankruptcy court proceedings.
As of Saturday, no filing has taken place in Bankruptcy court. J. Mark Brewer, a Houston lawyer and Stanford investor suing the Securities and Exchange Commission for seizing assets that Stanford did not control told FOX Business earlier this week he believed Janvey would eventually seek to liquidate Stanford through bankruptcy.
Janvey’s office says it will update its Web site next week to answer investor questions as to the current status of Stanford Financial Group.
Stanford Financial Lays Off 1,000 Employees
(Letter to Stanford Employees on Page 7)
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