Background

Like many other Ponzi schemes, R. Allen Stanford’s operated by selling Certificates of Deposit and paying an initial group of victims a high return using subsequent investors’ money, all the while taking large portions of the investment funds for himself and his various entities (the “Stanford Entities”). While the Ponzi scheme’s perpetrator and many of his associates were sentenced to prison, hundreds of civil suits were filed in various courts that related to and stemmed from the Stanford Ponzi scheme.