Stanford Liquidators Win Bid to Get $20 Million in U.K. Assets
Friday August 05 2011 | 06:25 AM

Stanford International Bank’s liquidators won a bid to gain access to $20 million of assets frozen in the U.K.

Grant Thornton LLP, which is liquidating the Antigua-based bank, will use the money to fund its plan to recover assets for victims of R. Allen Stanford’s alleged Ponzi scheme. Judge Elizabeth Gloster yesterday ordered the release of $20 million, with $5 million to be made available to Grant Thornton immediately.

Stanford, 61, faces civil and criminal allegations that he defrauded investors of more than $7 billion using bogus certificates of deposit issued by Stanford International Bank. Stanford denies the claims. His criminal trial was postponed until January 2012 because of health problems.

About $100 million of Stanford International Bank’s assets are held in the U.K. in various hedge funds. The money has been the subject of a legal battle over access to the funds. The U.K. Serious Fraud Office wants to hand the assets to the U.S. Department of Justice.

Grant Thornton said it will use the money to fund lawsuits against banks and advisers who worked with Stanford. The accounting firm also hopes to clawback funds from investors who profited from the alleged fraud, its lawyers said.