Stanford Victims Say SEC Office Let $7B Ponzi Scheme Happen

Law360, New York (July 3, 2012, 1:38 PM EDT) -- Victims of Robert Allen Stanford’s $7 billion Ponzi scheme on Monday slapped the federal government with a proposed class action, claiming a U.S. Securities and Exchange Commission office in Texas essentially facilitated the scheme by ignoring evidence of wrongdoing.

The lawsuit, filed under the Tort Claims Act in Louisiana federal court, alleges that employees at the SEC's Forth Worth, Texas, office knew as early as 1997 — only two years after Stanford Group Co. registered with the agency — that the company was likely operating a...
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