Investors Can't Escape Stanford Receiver's Suit

Law360, New York (September 26, 2011, 9:23 PM EDT) -- A Texas federal judge on Monday denied requests for dismissal from investors of Robert Allen Stanford's $7 billion Ponzi scheme in a suit brought by Stanford's receiver seeking to recover funds related to the fraud.

U.S. District Judge David C. Godbey rejected investor Gary Magness' arguments that receiver Ralph Janvey's claims lack subject matter jurisdiction and standing under the federal law, allowing the allegations against Magness and his various businesses remain.

Judge Godbey also denied requests for dismissal from five other investors, including Plateau Telecommunications Inc.,...
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