The University of Miami filed a brief with the Fifth Circuit on Thursday supporting Stanford International Bank's largest investor in seeking a Texas Supreme Court review of a thus-far successful attempt from the bank's receiver to claw back funds produced through a $7 billion Ponzi scheme.

The Florida university said in its amicus brief that Stanford investor Gary D. Magness was right to challenge an appellate panel's finding earlier this month that Magness could not keep $79 million he pulled back from Stanford after finding out it was under regulatory investigation.

The ruling split with a lower court jury who found that looking into the upheaval surrounding Stanford would have been futile and that Magness thus received the transfers in good faith under the Texas Uniform Fraudulent Transfer Act.

The resulting and critical question of what can be considered good faith under TUFTA should be taken up and settled by the state's high court, according to the University of Miami, which is facing its own clawback from Stanford's receiver over $6 million the university claims it was paid for under "an arm's length contract with entities run by [Ponzi mastermind] R. Allen Stanford."

Magness and his entities are represented by Andrew J. Petrie and Rachel R. Mentz of Ballard Spahr.

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