Stanford International Bank

Stanford International Bank was a bank based in the Caribbean, which operated from 1986 to 2009 when it went into receivership. It was an affiliate of the Stanford Financial Group and failed when its parent was seized by United States authorities in early 2009 as part of the investigation into Allen Stanford.

Prior to its demise, Stanford International Bank Limited (SIBL) offered certificate of deposit (CDs) at rates consistently higher than those available from banks in the United States.

History

Founding

The bank was started by Allen Stanford in 1986 in Montserrat where it was called Guardian International Bank. Allen Stanford's move into banking utilised funds he had made in real estate in Houston, Texas, in the early 1980s.[1] There was no direct connection between Stanford's insurance business in Texas and the banking business.[2]

Stanford relocated its operations to Antigua.[3] The bank's portfolio was overseen by an investment committee consisting of Allen Stanford; his father; Laura Pendergest-Holt, Stanford Financial Groups' Chief Investment Officer; James M. Davis (Allen Stanford's college roommate), CFO of Stanford International Bank; and a resident of Mexia, Texas (where Stanford's US interests were based) with cattle ranching and car sales experience.[4]

External links

References

Kristen Hays and Mary Flood. Billionaire downplays scrutiny of Stanford Financial Houston Chronicle, 13 February 2009, retrieved 24 November 2011^
Patrick Kidd. Profile: Behind Allen Stanford's easy charm there is the glint of steel The Times of London, 18 February 2009, retrieved 24 November 2011^
Matthew Goldstein. Stanford's Failed Health Club

Receivership and liquidation

In the United States District Judge David Godbey froze all of the Stanford personal and corporate assets in the US and appointed Ralph Janvey of Dallas as receiver. Janvey retained control until the SEC suit is resolved.[16]

On 19 February 2009, Nigel Hamilton-Smith and Peter Wastell of the British accounting firm Vantis were appointed joint receivers of the bank,[17] and were made liquidators on 15 April 2009.[18]

In February 2010, Vantis' auditors Ernst & Young expressed concern about whether Vantis would receive payment for its work on Stanford.[19] Properties in Antigua emerged as an important part of the company's assets, to be sold to enable payment of creditors and Vantis' own fees.[20]

In June 2010, it was announced that the liquidators and the US receiver had entered into a co-operation agreement, under which the liquidators were to deal with the realisation of the bank's assets in Antigua and the United Kingdom, and the US receiver was to deal with the realisation of the bank's assets in the US and Canada.[21]

In June 2010, the High Court of Antigua resolved that Vantis should be removed from its responsibilities. The firm, which had recently received government approval to sell the property assets, appealed the decision.[22] Vantis itself was placed in administration on 29 June 2010 and promptly broken up, with the various offices and businesses being sold as going concerns.[23] Hamilton-Smith and Wastell transferred to the buyout firm FRP Advisory, and continued their legal fight to be reinstated as liquidators of Stanford.[24] In May 2011 following a claim made to the Eastern Caribbean Court of Appeal, Hamilton-Smith and Wastell were removed as liquidators.[25] On 12 May 2011, Marcus Wide and Hugh Dickson of the international accounting firm Grant Thornton were appointed the new liquidators by the High Court of Antigua.[26]

In September 2011, it was reported that the U.S. Justice Department was investigating whether a Swiss subsidiary of Société Générale was used to channel funds to Stanford's personal accounts and failed to follow due diligence procedures or to ask questions about irregular banking activity.[27]

On Friday, January 20, 2012, an email was sent by the Joint Liquidators to creditors who had been depositors, the "Fraud Victims" urging them to resubmit their claims. They were given some hope of an "interim distribution" but no imminent final sale of some major assets. The information is repeated and the forms are at http://www.sibliquidation.com/claims-administration/ (the URL denoted in the email was erroneous in as much as the "-" was missing between the words "claims" and administration").

Stanford International Bank

History

Founding

See also

External links

References

Regulatory investigation in the United States

Subsidiaries in Venezuela and Mexico

Receivership and liquidation

Online creditors’ meeting