SEC Can't Shake Investor Action Over $7B Stanford Fraud

Law360, New York (September 7, 2012, 4:12 PM EDT) -- A Florida federal judge ruled Friday that the U.S. Securities and Exchange Commission must face a putative class action alleging it should have reported Robert Allen Stanford's bank to a securities industry liquidator after realizing it was running a $7 billion Ponzi scheme.

U.S. District Judge Robert N. Scola Jr. partly denied the SEC's Feb. 14 motion to dismiss the suit by Carlos Zelaya and George Glantz. The investors in Stanford International Bank Ltd. say the agency believed as early as 1997 that Stanford was operating...
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