Late Summer 2010 Hearing Will Determine.
In our December 20, 2009 post, we discussed the situation of jailed Texas financier R. Allen Stanford, who is stage front and center of alleged Ponzi scheme charges relating to now-defunct, Houston-based Stanford Financial Group. We now have an update.
As reported by Juan A. Lozano in a recent Associated Press story, U.S. District Judge Nancy Atlas of Texas has scheduled a September 2010 hearing to determine whether Mr. Stanford and other executives or Lloyd’s of London will have to pay for the defense of money laundering charges
against the individual defendants. That determination is going to be made in a civil case where Mr. Stanford and other executives have sued the insurer for a determination that the defense must be picked up by the British-based insurance syndicate.
Apparently, Lloyd’s of London has already paid more than $9 million in legal fees relating to the criminal and civil cases against Mr. Stanford and other executives.
We will probably have more to report on this one in the future.