Stanford victim expresses outrage after getting insulting check in the mail
BATON ROUGE- A man who invested $65,000 with the Stanford group received a check recently after a court-appointed receiver located some of the money from the ponzi scheme.
LV Reeves got less than a penny on the dollar for his investment, a check for $540. Reeves never joined in on a class action lawsuit. Instead, he tried to take his chances with the court-appointed receiver responsible for recovering money to Stanford investors.
"Year after year, I'd get a little paper saying they still handling it trying to claw back money and collect and locate all the money," Reeves said.
Days ago, he received a $540 check. That's less than a penny on the dollar of his $65,000 investment.
"The shameful thing about it is our federal government allows this to go on, even though we have the SEC that is supposed to prevent this," Reeves said.
Earlier this year, we introduced you to other Stanford victims still waiting to get their money. Kathy Mier and her husband invested their entire life savings, about $240,000 with Stanford.
"We have five children," Mier said. "Our goal in life was to be able to retire and not rely on the government, because our parents never did or our children."
Mier and others are part of a class action lawsuit. About 120 of them are being represented by a Baton Rouge attorney. The Stanford Scheme promised returns too good to be true. The Securities Exchange Commission caught on to Allen Stanford's Ponzi Scheme and in 2009, US Marshals raided offices in Houston and Baton Rouge. Overnight, investors were left with nothing. Tonight, Reeves calls the $540 check a joke. He believes the government should make investors whole since they dropped the ball.
"The law firms make millions," Reeves said. "All I can do is advise people to be cautious and diversify. Never put very much in any one item, stock, firm or anything because you can't count on anything anymore."
There was a big win for people part of the Class Action lawsuit two months ago. A judge certified the Class Action lawsuit. That's a big step in seeking recovery for the victims according tot he law firm representing them. Stanford's locked up for life in federal prison for his fraud. People in this area are out nearly a billion dollars, according to their lawyers.