Owners Of Houston Rockets And Memphis Grizzlies Named In Suit Filed By Allen Stanford Receiver
Bloomberg has reported that the owners of two NBA teams have been sued for $1.6 million by the receiver for indicted financier R. Allen Stanford. Ralph Janvey, the receiver and others representing bilked Stanford investors have filed suit against the Houston Rockets’ owner, Rocketball, LTD. and Hoops, LP, which owns the Memphis Grizzlies.
As we have reported previously in our news articles, Allen Stanford is accused of running a $7 billion Ponzi scheme that was centered around the sale of certificates of deposit issued by his Antigua based Stanford International Bank, LTD. Stanford is presently going through rehab for addiction to prescription pain medications in order to attend and possibly testify at his upcoming trial.
The suit against the owners of the Rockets and the grizzlies is for receiving payments of nearly $1.6 million from Stanford and his co-defendants between March 2006 and November 2008, for which they didn’t return equivalent value and may have performed other services that helped perpetrate the alleged fraud. The suit filed in Dallas does not specify how much each team allegedly received but the Houston based Stanford Group did pay for advertising at the Toyota Center, which is the Rockets home court.