Lawyers quit still unable to claim off financier’s D&O policy

Allen Stanford’s lawyer Dick DeGuerin has complained that the receiver controlling the financier’s frozen assets has paid himself but won’t release D&O insurance funds for defence laywers, Bloomberg reports.

“It’s an outrage that the receiver has blocked every effort for Allen Stanford’s lawyers to be paid even a penny, whether from Stanford’s own funds or from the D&O insurance policy, while he destroys the value of the Stanford companies and pays himself and his lawyers and accountants to do it,’’ DeGuerin said.

The receiver, Ralph Janvey, received $20m for the first eight weeks and has requested a further $7.6m.

Standford wants to replace DeGeurin, who is quitting because he has not been paid, with Robert Luskin of Washington’s Patton Boggs but the law firm refuses to help until assets are available to pay their fees.