More than 400 former employees of disgraced financier, Sir Allen Stanford, say they have reached an agreement with the Bank of Antigua to recover severance and retirement funds owed to them.

"Agreement was reached to collectively pursue the employees' retirement fund through the legal system of Antigua and Barbuda," said Scott Glendinning, spokesman for the Stanford Severed Employees Committee (SSEC), which is mandated to secure the payments.

Under the deal, hammered out last week, attorneys for the bank will cooperate with the committee's legal representative Cosbert Cumberbatch.

Several million owed

"The Stanford Group of Companies has been partially dismantled and there's really no trustee to administer the retirement fund and that's beyond the abilities of the bank to disperse any money without an independent trustee, so the two counsels are working towards seeking remedy through the legal system," said Glendinning.

"The committee is hopeful that with this level of cooperation at the Bank of Antigua we will have this matter resolved soon."

The SSEC said its members are owed several million dollars with the severance alone amounting to EC$10 million (US$3.7 million).

Glendinning said the committee would meet with the former employees before Christmas to update them on the development.

Bank of Antigua was previously owned by Sir Allen; however, the Eastern Caribbean Central Bank took control of it in February after the founder was charged by the United States (US) Securities and Exchange Commission for allegedly running a US$7 billion Ponzi scheme.

Stanford, 59, who is in a US jail awaiting trial, has denied the charges.

- CMC