Stanford exec sues for insurance to fund defenseBy TOM FOWLER Copyright 2009 Houston ChronicleMarch 18, 2009, 10:22PM
Sharon Steinmann Chronicle Laura Pendergest-Holt was named in civil fraud charges filed by the Securities and Exchange Commission on Feb. 17 against the company and two other executives, Stanford Chairman R. Allen Stanford and Chief Financial Officer James Davis. Resources Stanford employee goes to court, , The chief investment officer for Stanford Financial Group, Laura Pendergest-Holt, made a court appearance Friday on a charge of lying in a recent interview with the Securities and Exchange Commission. Video by Jason Witmer. Feb. 27, 2009.Stanford meets with clients, , Stanford Financial attorneys and financial planners held a meeting to discuss the future of assets with their clients Thursday evening. Video by Meg Loucks. February 26, 2009.Stanford investor wants answers, , An investor was searching for answers Thursday after learning about Stanford's legal problems. Video by Steve Campbell. Feb. 19, 2008. Whistleblowers talk about Stanford, , Two former Stanford financial advisors felt they were being forced to do unethical things and quit. They filed a whistleblower lawsuit against the company. The Houston Chronicle interviewed them first. Video by Meg Loucks. Investor shows up at Stanford, , Kelly DeHay said he has invested with Stanford Financial Group for several years and just learned he has lost money in an alleged multibillion-dollar investment fraud scheme. Video by Jason Witmer. February 17, 2009. COMPLETE COVERAGE IN THE BLOGS ABOUT R. ALLEN STANFORD ABOUT THE COMPANIES ABOUT THE CASE Read charge against Stanford CIO FOR INVESTORS Plan to unfreeze accounts (PDF) POLITICAL CONNECTIONS IN PHOTOS Reaction in Houston, elsewhere Stanford Financial Group's chief investment officer is suing Lloyd's of London, alleging it failed to pay for her legal defense under terms of an insurance policy. Laura Pendergest-Holt alleges in the suit, filed in state court in Dallas, that Lloyd's has not responded to a number of requests to provide the funds through Stanford's Directors and Officers Liability and Company Indemnity policy. Such policies are common at many companies and cover the legal defense for executives facing lawsuits by investors or other parties. Pendergest-Holt was named in civil fraud charges filed by the Securities and Exchange Commission on Feb. 17 against the company and two other executives, Stanford Chairman R. Allen Stanford and Chief Financial Officer James Davis. On Feb. 26 she was arrested on criminal charges of lying to SEC investigators. She has not formally entered a plea but her attorneys have said she is innocent, and she is free on $300,000 bail. She is the only person so far facing criminal charges in connection with the investigation. Like her co-defendants in the civil case, Pendergest-Holt has had her assets frozen and she "thus has no assets to defend herself against the SEC's claims," the suit says. Pendergest-Holt lawyer Brent Baker of Salt Lake City said Lloyd's hasn't responded to inquiries and "we need to be able to present a defense for her." She is asking for $5 million in actual damages and $40 million in punitive damages. Lloyd's officials could not be reached Wednesday evening for comment on the lawsuit. Executive liability policies usually exclude coverage if a case against an executive involves fraud, but the exclusions require a final judgment of fraud, not just an allegation. Attorneys for Pendergest-Holt said previously they reached an agreement with the court-appointed receiver for the return of some items seized during a search of her home last month and were going to seek release of other funds for living expenses and legal fees.
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Friday, September 3, 2010
