How much will it help the Ponzi victims?
When Sir Allen Stanford scammed investors out of millions of dollars in the biggest known Ponzi scheme on this side of Bernie Madoff, the world was outraged that the rich felt the need to take advantage of the public’s trust to get his hands on it. on more money. Now that he is in the hands of the law, AMC Liquidators will sell some of Stanford’s assets to make up for the millions of dollars lost. I thought the victims might also need low interest loans and instant cash, but maybe that’s just me.
Tamara Lush reports for The Huffington Post that AMC Liquidators is holding an auction in Fort Lauderdale, Florida. The furniture and other items for sale will come from the disgraced businessman’s Miami office.
A Boca Raton restaurant owner purchased a maroon leather chair, cherry wood table, and matching credenza for $1,500. A steal for the quality of the furniture is, of course, a penny and a dime compared to what Stanford does to its investors.
Where’s the remaining $2 billion?
“Value in Volume” is the slogan that AMC Liquidators bring to their auctions, and the same should apply when they try to sell Stanford office assets on the open market. At least 25 trucks of luxury office goods were sold, including Oriental rugs, marble tables and leather sofas. A bronze eagle (symbol of the Stanford Financial Group) is also on the block, as is a photo of the Stanford-sponsored Palm Beach County polo field. Oh yes, there is also the rug of Louis XIV of France, the “king of the sun”. No delusions of grandeur on Sir Allen’s part, is there?
Estimates put the total value of Fort Lauderdale sales at around $2 million. However, that is only the tip of the iceberg. According to Forbes, Stanford was worth $2 billion in 2008.
Trying to stick to setup man
In February 2009, Stanford was accused of “promising unrealistic returns to clients of $8 billion in certificates of deposit” and other vehicles for financial fraud through an offshore bank in Antigua, Lush wrote. The following month, a federal judge ruled that at least $226 million in “tax returns, fines and interest” was fair game for the government to pursue. But Stanford continued to deny the charges and was not even charged with a crime. Chief Investment Officer Laura Pendergest-Holt has been the scapegoat so far. He claimed through his lawyers that he had been “arranged” by Stanford.
Meanwhile, Stanford and its attorneys are “concerned” about the liquidation run by AMC Liquidators, claiming it is “an integral part of an overly hasty effort to liquidate a viable business that generates a decent income.” Just until they find something sticking, Teflon man.
But liquidating them must
A federal judge in Dallas had ordered it, and AMC Liquidators happily complied. Michael Grimme, owner of AMC, has noted that business is up in recent years due to the number of bankruptcies and company downsizing. AMC was asked by the court to control all five of Stanford’s Florida offices, but won only the tender for the Miami office. According to Grimme, this is partly because “the owner of the other four offices decided to keep the furniture in the back rental. The owner of the Miami property decided to sell the contents.”
“Many of my friends were targeted by Madoff’s scheme, and I also lost a lot of money in my account,” he said. “We’re very aware of who we’re buying this inventory from. You could say it’s probably time for a return.”
Pay them back. Give them a low interest loan for instant cash, even. Make sure justice is served.