Securities Law Daily provides daily coverage of developments in the regulation of federal, state, and international securities and futures trading, with objective coverage of the...
Nov. 28 — Former Texas tycoon R. Allen Stanford lost his bid to have the U.S. Supreme Court review a federal appeals court decision affirming his conviction for master-minding a decades-long $7 billion Ponzi scheme ( United States v. Stanford, U.S., No. 15-1490, cert denied 11/28/16 ).
He claimed in a petition for high court review that the government violated his Sixth Amendment right to counsel by seizing his assets prior to trial without showing that the assets were tainted. The justices Nov. 28 denied the petition without comment.
According to Stanford, a number of top law firms were willing to defend him, but because of the asset freeze, he was represented by “under-resourced, publicly paid, counsel, rather than counsel of his own choosing.”
Stanford and three Stanford Financial Group executives were charged in 2009 with misleading 30,000 investors in an alleged plot to sell fraudulent certificates of deposit. He was convicted after a six-week trial and sentenced to 110 years in prison, among other consequences.
In October 2015, Stanford failed to convince the U.S. Court of Appeals for the Fifth Circuit that the charges against him were defective or that he was denied a fair trial.
In other high court action, a wealth fund from Kazakhstan failed to gain review of the Second Circuit’s conclusion that the Foreign Sovereign Immunities Act didn’t protect it from claims it misled investors about the value of a subsidiary’s securities ( Sovereign Wealth Fund Samruk-Kazyna JSC v. Atlantica Holdings Inc., U.S., No. 16-201, cert denied 11/28/16 ).
The Second Circuit’s decision created a circuit split on whether a financial loss by a third party in the U.S. constitutes a “direct effect” in the U.S., the fund argued. “Review should be granted to reconcile this conflict.”
Stanford was represented by Wright & Close LLP, Houston. The Kazakhstan wealth fund was represented by Curtis Mallet-Prevost Colt & Mosle LLP.
To contact the reporter on this story: Phyllis Diamond at PDiamond@bna.com
To contact the editor responsible for this story: Seth Stern at email@example.com
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)