SEC Beats Class Action Over $7B Stanford Ponzi Losses

Law360, Los Angeles (August 12, 2013, 10:30 PM EDT) -- A Florida federal judge on Monday threw out a class action accusing the Securities and Exchange Commission of negligence for failing to report that Robert Allen Stanford’s $7 billion fund was a Ponzi scheme, ruling the regulatory commission was exempt from liability under federal tort law.

The putative class, led by Carlos Zelaya and George Glantz, alleged the SEC of conducting several investigations of the Stanford Group 1997 and 2004, according to Monday’s decision. With each investigation, it concluded the Stanford Group was a Ponzi scheme...
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