The Stanford Investment Fraud Whistleblowers
Stanford investment fraud whistleblowers left the company when they realized Stanford's unethical practices were intentional and unchanging. They went to the Securities Exchange Commission and helped build a case against the Texas billionaire.
In December of 2007, former Stanford Financial Group (SFG) financial advisers, Charles Rawl and Mark Tidwell quit their jobs for fear of being held criminally liable due to the investment fraud they feared was taking place at SFG. While working at SFG the men were aware of the company's unethical marketing methods and asked management to correct the wrong doing. When the company refused to change its ways Rawl and Tidwell quit and went to Securities and Exchange Commission (SEC) authorities with their concerns. With the mens' help, the SEC began building a case against the extravagant billionaire and his companies. When Stanford's lawyer, Thomas Sjoblom, stepped down, the SEC took it as a red flag and confirmation of their suspicions and pounced, raiding Stanford's offices just days later. Sjoblom's resignation, according to Peter Henning, a criminal and securities law instructor, was a "massive red flag" and "scream[ed] fraud."
In many instances whistleblowing has been looked down upon, whistleblowers are often referred to as tattle-tales or as selfish snitches, throwing others under the bus, so to speak, to save themselves. Due to this, it has also been known to bring on discrimination and difficulty finding work. Recently, however, the SEC has turned a positive light on whistleblowers, calling on them to help stop investment frauds earlier and, in turn, help restore the Commission's reputation.
Now, the whistleblowers, Rawl and Tidwell, have filed a wrongful termination and employment discrimination lawsuit against SFG. Also, investors have recently joined a class action lawsuit against SFG filed by former Stanford employees.
Securities Attorneys
Sorting through the paperwork and deciphering the financial jargon used in an investment fraud can be extremely difficult. Our team of securities attorneys can help you take the appropriate steps in recovering lost investments.
If you or a loved was has lost money in the Stanford investment scandal or any other securities fraud, contact an experienced securities attorney at Arnold & Itkin LLP for a free evaluation of your case.
