The Supreme Court has ruled that it will allow investors to sue entities bearing partial responsibility for the R. Allen Stanford’s Ponzi scheme. The scheme, which involved a number of legal firms, insurance companies and other facilitators, sapped investors of $7 billion.
Convicted in 2012, Stanford’s scheme duped victims into dropping money on fraudulent high interest saving accounts. The scheme had been going on for over 20 years, and because investors were unable to recoup earnings from the scheme, they sought opportunities to sue other parties involved with it. Those entities pushed back, citing a number of state and federal laws that they argued they were protected under.