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Dispute Over Payment of Legal Fees Drags on for Lloyds of London

April 27, 2010 | Posted in : Coverage of Fees, Defense Fees / Costs, Fee Dispute

A recent article, “Waiting Game Continues in Stanford Legal Fee Dispute” reports that a hearing to determine who will pay the attorney fees for the defense in the Stanford Ponzi scheme is set for September.  R. Allen Stanford and three other executives are accused of bilking $7 billion from investors in a massive Ponzi scheme.  The appeals court last month ruled legal fees for Stanford and the other executives must continue being paid by British insurer Lloyds of London under an insurance policy that covers such expenses.  So far, Lloyds has paid more than $9 million in legal fees for the Stanford case.  Lloyds argues that its policy doesn’t pay on charges of money laundering, which Stanford and others are accused of doing.  The dispute over the payment of legal fees is part of a civil lawsuit filed by Stanford and the executives against Lloyds and is separate from the criminal case.  Earlier this month, Harvard law professor and defense lawyer Alan Dershowitz joined Stanford’s legal team as an adviser.