In yet another investigation being conducted by the SEC’s Inspector General, the conduct of SEC officials in overseeing the Stanford Receiver has come into question.
Although the Stanford ponzi scheme resulted in multibillion dollar losses, the Stanford Receiver apparently has recovered only approximately $120,000,000. However, according to a variety of reports, the Receiver has spent over $118,000,000 for his attorneys and himself. The Inspector General’s investigation appears to be focused in on the SEC’s lack of oversight of the Receiver’s fees and expenses given the time spent on this matter.
The Receiver’s counsel has claimed that the Inspector General has not contacted the Receiver to discuss this particular issue, and has stated that the Receiver paid out a total of nearly $100,000,000 to investors. Further, the Receiver’s counsel claimed that only $47,000,000 was paid for necessary expenses to wind down Stanford’s operations.
This situation does not bode well for the public’s view of the SEC. The SEC seems to be, once again, “asleep at the switch,” and not properly supervising those that serve as its fiduciaries.