Secret out of court settlement with Pendergest-Holt
Lloyd’s lawyer Barry Chasnoff told a Houston court that Allen Stanford was involved in money laundering and so should not be able to collect on an D&O policy covering his defence fees, Reuters reports.
"These plaintiffs engaged in money laundering and there is no coverage on this policy," he said. Stanford is currently in jail, awaiting a January 2011 trial along with accounting executives Mark Kuhrt and Gilbert Lopez, and Stanford's former chief investment officer, Laura Pendergest-Holt.
Bloomberg reported that, Dan Cogdell, a lawyer Pendergest-Holt, Stanford’s chief investment officer, said his client has reached a settlement with Lloyd’s. No other details were provided.
No smoking guns
Stanford’s lawyer Robert Bennett said: "The evidence will show there wasn't any Ponzi scheme. There wasn't any type of fraud committed. There wasn't any misrepresentation."
Mark Kuniansky, Kuhrt's lawyer, said "There aren't any smoking guns. Underwriters have the burden of proof and they will not meet that proof."
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