[ by Melanie Gretchen ] Allen Stanford's conviction on charges he stole $7 billion from customers leads to the possibility of a next step: the recovery of client money of his Antiguan bank.  Following his conviction, the jury began hearing evidence on the $300 million prosecutors are seeking in forfeiture from bank accounts controlled by Stanford in the U.K., Switzerland, and Canada. The Source of the $300 Million. For the first time since Stanford's arrest and the freezing of his assets in 2009, thousands of customers stand to receive what the prosecutors succeed in recovering.  To date, the court-appointed receiver for Stanford’s businesses has set aside $80 million for victims out of $216 million collected from settlements and sales of his yachts and real estate.  In addition, the receiver has sued the government of Libya, Stanford brokers, and others who took money out of the company to try to increase the recovery.  [CI Note: Can you blame them?] Customers are also investing hope in the SEC, which sued the SIPC to compel it to qualify Stanford customers for payments of up to $500,000.  Previously, SIPC had denied coverage because the bank was offshore.  That dispute is before the courts. Stanford: Here on Out. Going forward, Stanford faces decades in prison when he is sentenced later this year on his conviction of 13 counts of fraud, conspiracy, and obstruction of a SEC investigation.  He was acquitted on 1 count of wire fraud for allegedly bribing an Antiguan regulator with $9,000 tickets to the Super Bowl.  His lawyers told reporters outside the court that he expects to appeal.  He has maintained his innocence. The Case. Three other former Stanford executives, including former chief investment officer Laura Pendergest-Holt, are awaiting trial in June on fraud charges in connection with the $7 billion Ponzi scheme.  Leroy King, the former Antiguan regulator accused of helping Stanford obstruct the SEC investigation, is fighting extradition to the US.  All have denied wrongdoing. Trial. In his defense, Stanford's lawyers said James Davis, the bank’s CFO and prosecution’s star witness, was responsible for running the bank’s day-to-day operations.  In contrast, Stanford was the visionary, running an international cricket tournament and building an empire of pet projects, including 2 Caribbean newspapers, a fleet of jets, and island properties.  Following the fall of Stanford Financial Group, Davis pled guilty to 3 criminal counts, including fraud and obstruction of justice in August 2009. Sentencing. When Stanford is sentenced, prosecutors will ask for a term of several decades.  U.S. sentencing guidelines are driven in part by dollar losses.  Based on previous sentences, Stanford’s term could amount to life in prison.

• Madoff's admission of running a $65 billion Ponzi scheme led to a sentence of 150 years in prison.
• Tom Petters, a Minnesota businessman convicted of running a $3.65 billion Ponzi scheme, was sentenced to 50 years in prison.

[Financial Times, 3/7/12]