SEC Sued Over Stanford Ponzi Scheme Oversight

Law360, New York (December 13, 2011, 6:21 PM EST) -- Two victims of Robert Allen Stanford's alleged $7 billion Ponzi scheme filed a purported class action Tuesday in Florida federal court seeking to hold the U.S. Securities and Exchange Commission responsible for letting the scheme become so massive.

Carlos Zelaya and George Glantz, investors in Stanford International Bank Ltd., say the SEC believed as early as 1997 that Stanford was operating a massive Ponzi scheme selling fraudulent offshore certificates of deposit and promising unreasonably high rates of return.

“The SEC sat and watched the scheme grow...
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