Stanford Ponzi Receiver’s $65 Million Settlement Vacated

The court-appointed receiver handling the fallout of the $5 billion Stanford Ponzi scheme suffered a setback when the Fifth Circuit vacated approval of a $65 million settlement June 17.

The receiver settled with insurance underwriters for Stanford International Bank and some related entities in 2017. But the lower court shouldn’t have approved the settlement because of the claims it released and the suits it barred, the U.S. Court of Appeals for the Fifth Circuit said, remanding the case.

The order follows a May 24 Fifth Circuit decision vacating a $79 million clawback the receiver had won from Stanford investors ...