Dispute of Lloyd’s D&O cover remains
Allen Stanford, accused of running a $7bn Ponzi scheme, will be represented by a public defender because his D&O insurer at Lloyd’s has been banned form paying out.
"The man needs an attorney, he's got an attorney, and now we're going to proceed to go to trial," US District Judge David Hittner said after ordering the Public Defender's Office to take the case.
Stanford's assets have been frozen since February, when the securities regulators filed civil charges against him.
Threats to Lloyd’s
The receiver in the Stanford case, Ralph Janvey, has argued that the insurance funds assets were meant for investors and has threatened Lloyd's with contempt if they make payments to Stanford. Now it is up the judge in the civil case to rule whether the insurance policy is part of the Stanford estate.