Texan’s Failed Ponzi Scheme Disbursement Amounts To 1-Percent

DALLAS (CBSDFW.COM/AP) — A federal judge in Dallas has approved an interim plan that distributes some $55 million in assets to bilked investors in a failed Ponzi scheme run by disgraced former Texas financier R. Allen Stanford.

The plan submitted by court-appointed receiver Ralph Janvey and approved Thursday by U.S. District Judge David Godbey amounts to only 1-percent of the $5.1 billion in claims from investors.

Stanford was convicted last year on 13 fraud counts related to the estimated $7 billion scheme and was sentenced to 110 years in prison.

He contended he made money for the investors who bought certificates of deposit from his Caribbean bank. But federal prosecutors showed, and a Houston jury agreed, that Stanford spent his investors’ money on failed businesses and a lavish lifestyle. after his arrest Stanford said he was broke, and was considered an indigent defendant represented by court appointed attorneys for most of his trial.

(©2013 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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