The receiver for the $7 billion Ponzi scheme run by R. Allen Stanford asked a Texas federal jury Monday to allow him to recoup nearly $90 million from a billionaire investor who allegedly learned insider information that tipped him off Stanford was running a fraud.

Receiver Ralph Janvey told jurors investor Gary Magness knew or should have known Stanford International Bank Ltd. was insolvent and engaged in fraudulent activity at the time his investment vehicles—GMAG LLC, Magness Securities LLC and Mango Five Family Inc. in its capacity as trustee for the Gary D. Magness Irrevocable Trust—took out $88.2 million in loans from the bank.

Sanford is serving a 110-year prison sentence for his role in the Ponzi scheme. The loans, which were secured by certificates of deposit bought by the Magness entities, have already been legally deemed to be fraudulent transfers from the massive Ponzi scheme.

The trial centers on whether the Magness parties acted in good faith when they took out the loans, which happened about four months before the massive Ponzi scheme was closed in 2009 by American officials.

Andrew Petrie of Ballard Spahr LLP, an attorney for Magness, told jurors were totally unaware that the Stanford empire was a fraud when they took out the loans, and that the receiver is now trying to cast suspicion on his client’s good faith actions. There was no public information citing problems with the bank’s legitimacy at the time.

"The receiver is Monday-morning quarterbacking and taking things out of context," Petrie said.