Stanford Victims Say SEC Office Let $7B Ponzi Scheme Happen

Law360, New York (July 03, 2012, 1:38 PM ET) -- Victims of Robert Allen Stanford’s $7 billion Ponzi scheme on Monday slapped the federal government with a proposed class action, claiming a U.S. Securities and Exchange Commission office in Texas essentially facilitated the scheme by ignoring evidence of wrongdoing.

The lawsuit, filed under the Tort Claims Act in Louisiana federal court, alleges that employees at the SEC's Forth Worth, Texas, office knew as early as 1997 — only two years after Stanford Group Co. registered with the agency — that the company was likely operating a...
To view the full article, take a free trial now.
Try Law360 for free for seven days
Already a subscriber? Click here to login

Already have access?

  1. Forgot your password?
  2. Sign In

Get instant access to the one-stop news source for business lawyers

Required