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Stanford Victim Penny-a-Dollar Payment Plan Goes to Judge

R. Allen Stanford’s investors may now be able to recoup some of their losses more than four years after the Stanford Group Co. founder was sued by the U.S. Securities and Exchange Commission and put out of business. Ralph Janvey, the receiver appointed by a federal judge to marshal and liquidate Stanford’s personal and business assets in February 2009, is set today to ask permission to make a $55 million interim distribution, about one penny for each of the $5.1 billion dollars lost in the fraud scheme. The proposed payout trails the more than $5.4 billion paid to victims of Bernard L. Madoff, who was arrested in December 2008, about $4.9 billion paid clients of the MF Global Inc. brokerage after its parent MF Global Holdings Ltd. failed in October 2011, and the $123 million interim distribution for victims of Peregrine Financial Group Inc. founder Russell Wasendorf, who prosecutors last year said stole $215 million. More on Bloomberg here.

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