Stanford Ponzi Receiver Can Get $79 Million From Unaware Investor

The court-appointed receiver for R. Allen Stanford’s $7 billion Ponzi scheme can collect $79 million from an investor even though he didn’t have knowledge it was a scam, under a ruling by the U.S. Court of Appeals for the Fifth Circuit.

Texas law doesn’t allow people who received fraudulent transfers from a Ponzi scheme to keep the money if they had reason to be suspicious, the Fifth Circuit said Jan. 9.

The case involves investor Gary D. Magness and his companies, who invested about $79 million in what turned out to be fraudulent certificates of deposit issued by the Stanford ...