SEC Can't Block Discovery In Suit Over $7B Stanford Fraud

Law360, Miami (February 14, 2013, 7:16 PM EST) -- A Florida federal judge on Thursday allowed limited discovery to begin in a putative class action alleging the U.S. Securities and Exchange Commission should have reported Robert Allen Stanford's bank to a securities industry liquidator after realizing he was running a $7 billion Ponzi scheme.

U.S. Magistrate Judge Alicia Otazo-Reyes resolved a dispute between the SEC — which had hoped to stay discovery while a motion to dismiss is pending — and Stanford investors Carlos Zelaya and George Glantz by allowing the plaintiffs to begin some...
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