Stanford Denies Investment Fraud Charges

Posted on April 3, 2009 by Houston Personal Injury Attorney

In his first response to investment fraud charges brought against him by the U.S. Securities and Exchange Commission (SEC), billionaire Texas financier, Allen Stanford, has denied masterminding the $8 million fraud.

Stanford Financial FraudIt's the first formal statement we’ve heard from the man at the center of the Stanford investment scam. In the response, Stanford denies each of the allegations listed by the SEC. He also announced he will be representing himself in court due to the freezing of his assets by court-appointed receiver Ralph Janvey.

Allen Stanford stands accused of scamming investors out of billions of dollars by conducting a huge Ponzi scheme in which he sold purportedly safe certificates of deposit and promised ultra-high returns. While he has yet to be criminally charged, his chief investment officer, Laura Pendergest-Holt, remains the only person involved in the fraud to have criminal charges filed against her.

Stanford’s predicament – not having money to hire a lawyer – may seem strange, but he is not without company. His situation is similar to that faced by other investment fraudsters like Arthur Nadel. Nadel has also been forced to represent himself due to lack of funds. Bernard Madoff, on the other hand, was able to hire a lawyer using funds believed to be unrelated to the infamous Madoff investment fraud. In 1989, the Supreme Court ruled that a person's right to counsel was not violated if his assets were seized, depriving him of the ability to hire a lawyer. Experts believe that with no money and no lawyer, Stanford will be less likely to avoid indictment. He will probably find that conceiving and masterminding the $8 billion Stanford financial fraud was far easier than figuring out how to free himself from the tangled web he's woven.  

Stanford Investment Fraud Attorneys

Protecting your investments after they have been involved in a securities fraud like the one Stanford operated, can be hard to do on your own. These are complex legal cases that involve thousands of other duped investors and expert attorneys. Being represented by an experienced securities attorney can help you recover lost investments.

If you have lost money in the Stanford Financial Group fraud or any other securities fraud, contact a securities attorney at Arnold & Itkin LLP to discuss your options for compensation.

 

 

 
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Louisiana Investors File Investment Fraud Lawsuits against Stanford Group Advisors for Misrepresentation

Posted on April 1, 2009 by Houston Personal Injury Attorney

The Stanford Group lawsuit craze rolls on – a group of 10 investors in Baton Rouge, Louisiana filed suits against their financial advisors claiming they lost millions in the Stanford investment fraud.

The lawsuit was filed in the 19th Judicial District Court against six Stanford group advisors, alleging negligence on their part. The lawsuit claims the advisors misled the investors, leading them to believe they were investing in safe Certificates of Deposit (CDs) from Stanford International Bank. The investors also claim that the advisors failed to make proper inquiries about the risks of the CDs and failed to inform investors of the risk. The lawsuit calls the bank nothing but a ‘’highly leveraged hedge fund’’ and the bank's CDs ‘’high risk ultra speculative junk bonds’’.

Stanford Group advisors promised investors 8 percent returns on the CDs at much higher rates than other CDs offered at the time. The advisors are accused of breach of contract and negligence. Stanford Invesment FraudThe investors are seeking repayments of the money they lost, which they say is in the millions of dollars. Lawyers for the defendants insist that it is much too early to file an investment fraud lawsuit because the extent of losses of Stanford investors is still unclear.

In February, the Securities Exchange Commission (SEC) accused Allen Stanford, James Davis, and Laura Pendergest-Holt of running an $8 million investment fraud. They have been accused of lying to investors about the safety of the certificates of deposit sold by the bank and promising ’’high returns’’. Stanford has yet to be charged with a crime. The Baton Rouge lawsuit is Louisiana's first regarding the Stanford investment fraud. The area had several wealthy investors who bought CDs from Stanford Bank.

Stanford Fraud Lawsuits

Recovering lost investments after a scam like the Stanford CD scam can be a long and tedious process. For this reason it is important to take steps to protect your investments as quickly as possible with the help of an experienced securities attorney. 

If you've lost money in the Stanford Financial fraud or any other investment scam, contact a securities attorney at Arnold & Itkin LLP to learn how you can recover your investments. 

 

 
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