Assets belonging to some former employees of the Stanford Group Co. (SGC) will remain in the deep freeze. The 5th U.S. Circuit Court of Appeals ruled that the former employees could not use a motion to compel arbitration to defeat a U.S. District Court’s preliminary injunction that put millions of dollars out of their reach.
The background in the case, according to the Dec. 15 decision in Janvey v. Alguire, et al. , is as follows: In 2009, the U.S. Securities and Exchange Commission filed a securities fraud complaint against SGC and “various other Stanford corporate entities” in U.S. District Judge David Godbey’s Dallas court for allegedly “perpetrating a massive Ponzi scheme.”
