Louisiana Investors File Investment Fraud Lawsuits against Stanford Group Advisors for Misrepresentation
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. 
The 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.
A few employees from the Houston headquarters will be kept on long enough to wrap things up at the office and close the company down. After, however, they will also be out of a job.
Most of these accounts are managed at Pershing LLC, the clearing firm for the majority of Stanford accounts. Janvey, however, has also considered releasing accounts held at JP Morgan Clearing Company..jpg)
According to Business Insurance, contrary what you might expect, most of these lawsuits were not filed in the latter half of 2008, when the extent of the credit crisis became clear. Rather, most of the cases were filed in the first half of the year, 
In January, Burden and the Gagosian Gallery purchased the gold, through Stanford Coins & Bullion, from Dillon Gage Group, a rare coins and metal dealer unrelated to Stanford or any of his businesses. The parties agreed that Burden and the Gagosian would wire the payment for 
Guiana Island is Antigua's largest island measuring 2.5 miles across and .5 miles wide. With extensive mangroves, coral reefs and wildlife it is one of Antigua's ecological treasures. It is home to Antigua's national animal, the European fallow deer, and the endangered West Indian whistling duck.
According to the SEC, on a monthly basis, Stanford and Davis came up with a set return on Stanford International Bank investments and worked backward from there, falsifying financial documents to support their deception.
In a different lawsuit, J. Mark Brewer sued to SEC in an attempt to get access to frozen retirement accounts. His funds are held by a clearing firm called Pershing, who handled Stanford transactions. Brewer argues that, although, Stanford may be guilty, his dealings with Pershing have nothing to do with his situation. Brewer is one of many investors unhappy with the freezing of their Pershing assets. Some of the others, however, have taken a different approach; they are on board with the SEC's civil lawsuit in Dallas.
Also, in 2001, Stanford, claimed he was a descendant of Stanford University's founder, Leland Stanford. Stanford University officials denied any relation and, in 2008, filed a trademark infringement lawsuit against the billionaire, claiming his actions were "injurious" to the university's name and caused "public confusion." This odd attempt at name dropping supports the idea that the egomaniacal Stanford is after power in every way. 
In a classic case of the foxes guarding the hen house, Lena Stinson, who served as the 
According to insiders, nearly half of all 
Much like investors, senior employees at Stanford had limited access to the bank's investment methods themselves. At least one employee, Michael Zarich, told .jpg)
equaling the donation Stanford made to his election campaign to charity. Several lawmakers have also followed suit. According to sources, the Stanford Financial Group spent approximately $4.8 million in donations to American politicians over the past decade. Stanford worked hard to spread his influence in American politics. He, not only donated to the Obama, McCain and Clinton campaigns, but in 2002, donated heavily to Florida senator Bill Nelson who served as vice chairman of the Democratic Senatorial Campaign Committee during the time Congress was debating the introduction of harsher anti-investment fraud laws. .jpg)
Their reasons for suspicion are not hard to understand; it all boils down to common sense. Brokers have confirmed that they were suspicious of the incredibly high returns the Stanford financial scheme promised investors, coupled with the minimal risk company officials promised investors. Many former brokers who worked for Stanford left, unable to digest the unsavory practices at the firm. The suspicions about the flamboyant Stanford were confirmed over the past few days as his offices were seized and cases were filed against him. As the Stanford Financial fraud unfolds his ploy to gain investments becomes more clear.