Stanford assets not enough to cover billions of investors money

On Monday a U.S. court was advised by the Stanford receiver Ralph Janvey of the terrible condition of Allen Stanford's financial empire. Meantime Antigua and Barbuda's government moved to seize an island owned by the Texas billionaire accused of an $8 billion fraud.

The U.S. District Court in Dallas appointed Janvey to take control of Stanford International Bank and Stanford Capital Management, as well as their parent Stanford Group on February 17, 2009. The lawyer said that the estate’s final assets might only reach hundreds of millions of dollars, not billions.

"Based on our preliminary investigation, the liquidity situation and overall financial condition of the Stanford entities can only be described as dire," Janvey said in a statement.

With the acquired Caribbean knighthood Stanford made other expenses with tens of millions of dollars in unpaid bills as reported in the statement. Janvey's accounting found just a limited amount of cash on hand.

While at bail hearing an FBI agent testified that Janvey revealed only $90 million in Stanford assets with $160 million in a Credit Suisse account by the moment.

The judge order extended until March 12 freezes assets and forbids the destruction of documents related to the case. A number of investors found themselves unable to pay mortgages or medical bills which made them file motions to get a relief from the court. Janvey told the judge he plans to release accounts that contain $100,000 or less later this month.