According to court documents, the “proceeds” the ballplayers received from Mr. Stanford’s self-styled “certificate of deposits” were found in accounts at Pershing, a clearing broker frequently used by Mr. Stanford.
On the lower end, Mr. Damon stands to lose $400,070, which includes the $400,000 principal that Mr. Damon put up and about $70 in interest he got from Mr. Stanford. According to court records, Mr. Maddux is at the higher end, with the receiver seeking nearly $3.7 million - Mr. Maddux’s $3.5 million initial investment and $170,000 in profit.
“At the end of the day, these guys will get something back from the collective pot,” white-collar defense lawyer Barry J. Pollack said. “While they might be putting in $1.25 now, they may be getting 75 cents down the road.”
The receiver argues it is only fair that all of the money recovered goes into one pool and is distributed among all the investors, both those who made money and those who lost money.
“I do think this is [the receiver] trying to establish a beachhead, and once they get the court to buy the concept, I do think they will go looking for other investors who have been paid back either their principal or their return on their investment,” Mr. Pollack said. “It’s a little bit of a Robin Hood concept - we are going to take from the lucky few that got paid back and put it in a pool and distribute to everybody.”
Ben Conery is a member of the investigative team covering the Supreme Court and legal affairs. Prior to coming to The Washington Times in 2008, Mr. Conery covered criminal justice and legal affairs for daily newspapers in Connecticut and Massachusetts. He was a 2006 recipient of the New England Newspaper Association’s Publick Occurrences Award for a series of articles about ...
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