Taxpayers can rejoice that alleged Ponzi schemer R. Allen Stanford is no longer a public ward — at least, not when it comes to his legal defense. On Friday, U.S. District Judge David Godbey in Dallas ruled that Stanford can now use insurance proceeds from a Lloyds of London directors and officers policy to pay his legal bills.

Until the ruling, Lloyds had refused to release the proceeds after the court-appointed receiver for Stanford’s businesses, Ralph Janvey of Dallas firm Krage & Janvey, challenged the jailed financier’s right to the D&O policy. With his assets frozen, Stanford’s criminal case was turned over in mid-September to public defender Mike Sokolow and Houston defense lawyer Kent Schaffer. Schaffer has been billing the government at the court-set rate of $110 an hour.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]