Today's General Counsel mentioned an article by Litigation Partner Jason Hirsh in a write-up, "Standford Ponzi Scheme Ensnares Golf Channel," on the recent Fifth Circuit Court of Appeals decision. Jason's article, "Golf is a Crazy Game," is about how the Golf Channel lost $5.9 million as a result of innocently doing business with a company secretly operating a Ponzi scheme.
On March 11, 2015, the Fifth Circuit Court of Appeals, in Ralph Janvey, as Receiver for Stanford International Bank Limited, et al., v. The Golf Channel Incorporated, Case No. 13-11305, issued a stomach curdling decision requiring The Golf Channel ("Golf Channel") to return nearly $6 million to the Receiver for Stanford International Bank, Limited ("Stanford”), which operated a now-infamous Ponzi scheme. The basis for this decision was that Stanford’s creditors could not receive value for advertising efforts intended to extend a Ponzi scheme.
To read the full article, please click here