La. Investors Sue SEC Over Stanford Failures

Law360, New York (March 24, 2011, 6:42 PM EDT) -- A group of Louisiana investors who lost more than $18 million to Robert Allen Stanford sued the U.S. Securities and Exchange Commission in Texas on Thursday, alleging a conflict of interest within the agency kept it from halting the fraudster's Ponzi scheme.

According to a complaint filed in the U.S. District Court for the Northern District of Texas, Spencer Barasch, the former enforcement director in the SEC's Fort Worth office, stopped four separate investigations into Stanford International Bank Ltd. between 1997 and 2005. Barasch is not...
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