Beginning Next Week: InsideCounsel will become part of Corporate Counsel. Bringing these two industry-leading websites together will now give you comprehensive coverage of the full spectrum of issues affecting today's General Counsel at companies of all sizes. You will continue to receive expert analysis on key issues including corporate litigation, labor developments, tech initiatives and intellectual property, as well as Women, Influence & Power in Law (WIPL) professional development content. Plus we'll be serving all ALM legal publications from one interconnected platform, powered by Law.com, giving you easy access to additional relevant content from other InsideCounsel sister publications.

To prevent a disruption in service, you will be automatically redirected to the new site next week. Thank you for being a valued InsideCounsel reader!

X

Investors file suit against Proskauer Rose and Chadbourne & Parke

Stanford Financial Group investors claim to have lost millions in a Ponzi scheme and are seeking unspecified damages

Investors from Stanford Financial Group claim they lost millions of dollars in a Ponzi scheme orchestrated by law firms Proskauer Rose, Chadbourne & Parke and a partner who worked at both firms. They filed a lawsuit in Texas state court on Dec. 30, 2011, Thomson Reuters reports.

The lawsuit claims that Thomas Sjoblom, an attorney who worked at Chadbourne & Parke, and later at Proskauer Rose, conspired to defraud 49 investors in Mexico by involving them in the Ponzi scheme, organized by Allen Stanford. The suit says Sjoblom helped Stanford evade Texas securities laws and derailed regulators’ investigations of him. The suit also claims that the two law firms that employed Sjoblom are responsible for his misconduct.

The plaintiffs’ law firm also filed a similar class action lawsuit on behalf of the 49 defrauded investors, though none of them are plaintiffs in the other case. The plaintiffs are seeking unspecified damages to recoup their losses.

Join the Conversation

Advertisement. Closing in 15 seconds.