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.
Investors who wish to see their frozen funds released
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.