Stanford Victims Set Sights On Broker Pershing

Law360, New York (November 19, 2009, 3:02 PM EST) -- Victims of Robert Allen Stanford’s alleged $7 billion Ponzi scheme have launched a putative class action accusing Bank of New York Mellon Corp. subsidiary Pershing LLC of aiding the massive fraud.

The complaint, filed Wednesday in the U.S. District Court for the Northern District of Texas, alleged that as Stanford Group Co.’s clearing broker, Pershing played an instrumental role in the Ponzi scheme and propped up the scam to protect the profits the firm derived from the sale of the fraudulent certificates of deposit.

As clearing...
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