Financier R. Allen Stanford's half interest in Spring Creek Ranch Golf Club, a Jack Nicklaus design near Memphis, may be sold for $3 million, Bloomberg reports. Stanford had invested $30 million in the project. The sale was requested by a court-appointed receiver in charge of recovering money for Stanford investors.The buyer would be the Meyer family, which already owns the other half of the club and which agreed to cover Stanford's share of its operating deficit. (Last year the operating deficit amounted to $1.4 million.)
The article quotes an adviser from real estate firm CB Ellis as saying "most golf courses have lost 30 percent to 50 percent of their value since 2007."
Stanford has been accused of defrauding investors of $7 billion through the sale of bogus certificates of deposit, charges he denies. Bloomberg says Stanford has fought the sale of his assets before his trial, which is set to begin in January 2011.
-- P.F.
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