Allen Stanford's Daughter Drops Fight To Keep $1.3M Condo
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DALLAS — The daughter of jailed Texas businessman R. Allen Stanford has dropped her fight to stay in a $1.3 million Houston condominium, her attorney said Thursday.
Randi Stanford's decision came hours before she was to appear in federal district court to show why she should not be held in contempt for refusing to cooperate with government efforts to sell the 2,800-square-foot home. She will move out by March 31.
The condo was a gift from her father, who is accused of leading a $7 billion Ponzi scheme – allegations that he denies. Court-appointed receiver Ralph Janvey plans to sell the condo and direct the proceeds to allegedly defrauded investors.
On Wednesday, Janvey filed a declaration from a forensic accountant detailing that most of the $1.3 million purchase price came from the elder Stanford's personal bank account in Antigua, which is tied to his alleged wrongdoing.
Joe Kendall, Randi Stanford's attorney, said his client put up $20,000 for the condo and that her mother, Susan, put up $50,000. But the deed to the home is held by a limited liability company; its only member is R. Allen Stanford.
"That would make selling the property by Randi Stanford very problematic under the current circumstances," Kendall said.
He added that Randi Stanford is working three jobs to support herself.
Janvey notified Randi Stanford in March 2009 that he intended to sell her condo. He offered to allow her to continue living there rent-free so long as she maintained it in good order. He also offered to provide three hours notice before showing the unit to prospective buyers and 30 days notice for her to remove her possessions when it was sold.
Instead, she declined to cooperate and argued that Janvey's authority did not extend to the condo.
Randi Stanford said she spent more than $113,000 for upkeep since she moved in three years ago. She has not waived her claim to a share of the proceeds from the sale proportionate to her investment in the property, Kendall said.
Her father is the subject of a Securities and Exchange Commission lawsuit accusing him of promising inflated returns to about 28,000 investors on certificates of deposit at his Antiguan bank. The SEC also accuses him of skimming more than $1 billion to fund his lavish lifestyle.
Stanford is jailed in the Houston area on similar criminal charges.
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JEFF CARLTON 01/28/10 03:47 PM ET Associated Press