COViSAL - For Restitution
March 13, 2023
Clerk of the Court
United States District Court
Northern District of Texas
1100 Commerce Street
Dallas, Texas 75242
ATN: Chamber of the Honorable David Godbey
Last week, the U.S. Receiver for the Stanford Financial Group (“SFG”) reached an agreement for the ludicrous amount of $1,602 million with five (5) banks, Toronto Dominion Bank, HSBC, Société Générale (Suisse), Trustmark National Bank and Independent Bank accused of being abettors necessary in the execution of the Stanford Ponzi Scheme which fleeced depositors out of $7 billion.
This settlement would potentially award attorneys more than $400 million in fees and expenses.
When on February 16, 2009, SFG was seized by U.S. authorities the lives of thousands of families in the United States, Latin America, and other countries around the world were ruined. They had invested their life savings in a promise of safety under the protective umbrella of the United States. It was on this principle that they were sold their certificates of deposit from Stanford International Bank Limited.
Most of those affected are modest elderly and/or sick in retirement. Many live on the charity of their neighbors and others have committed suicide because they could not alleviate the suffering due to the loss of their money.
These families entrusted their savings to a company belonging to an American holding company, regulated and supervised by U.S. regulatory agencies. However, this trust was repaid with a betrayal that resulted in devastating losses.
During the last fourteen (14) years, the attorneys for the Receivership have been very well compensated with more than $400 million, while the affected families have received pennies for every dollar invested.
Approving this Settlement of $400 million in attorneys' fees on top of the $400 million already paid to the Receiver and his team of professionals is exorbitant.
Faced with our significant losses, we plead for a fairer resolution.
/s/ Jaime R Escalona
Jaime R. Escalona
On behalf of COViSAL
