April 02, 2010
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News: AmEx Files Lawsuit Against Stanford
It's not over yet for R. Allen Stanford, the financier who masterminded a $7 billion dollar con game. American Express (AmEx) filed a lawsuit alleging that the alleged con artist owes the company nearly $116,000 in credit card debt. Stanford is already being held in a federal detention center awaiting trial for 21 counts of criminal charges stemming from a lawsuit filed by the U.S. Securities and Exchange Commission. In addition to the credit card debt owed to American Express, Stanford is accused of selling fraudulent certificates of deposit (CD) to investors. As a result, all of Stanford's assets were frozen making it impossible for him to pay the American Express credit card debt even if he wanted to.
American Express expects Stanford will be served with the lawsuit papers pertaining to the credit card debt while incarcerated in the Houston center. According to court documents, American Express claims that Stanford "benefited" from the credit card transactions, acknowledge that he had received the benefits, and yet defaulted on payment. American Express's attorney indicated that the company was also considering filing additional charges with the receivership overseeing Stanford's assets. The company is wants Stanford to reimburse it more than $34,000 in legal fees pertaining to the defaulted debt.
Stanford has been charged for misrepresenting himself and his business to investors. He is being accused of stealing over $1.6 billion in his elaborate scheme. Of course, Stanford pleaded not-guilty to the allegations. It'll be a while before Stanford gets his day in court; his trial is set for January, 2011. Meanwhile, American Express will continue to pursue the credit card debt case that has not yet been set for trial. Stanford's attorney, Kent Schaffer, declined to comment on the case and Kristie Blumenschein, a spokesperson for the court appointed receiver of Stanford's assets, did not return any phone calls or emails.