Stanford Clients Sue SEC Over Frozen Assets

Law360, New York (March 4, 2009, 12:00 AM EST) -- Frustrated clients of Houston-based broker-dealer and investment adviser Stanford Group Co. — which has been implicated in a multibillion-dollar Ponzi scheme — have accused the government of wrongly freezing their assets when the scandal was uncovered last month.

The clients said in a complaint filed Wednesday in the U.S. District Court for the Southern District of Texas that the U.S. Securities and Exchange Commission violated their constitutional rights when it took control of the Stanford Group and related entities on Feb. 16.

The plaintiffs said that...
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