SCOTUS will allow fraud victims to sue all entities involved with Stanford Ponzi scheme

Find that financial and legal firms associated with case were not protected under previous rules

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.

Executive Editor

author image

Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.