Lawyers

$35 Million Settlement Reached in Allen Stanford Ponzi Scheme
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Allen Stanford

Summary: After Allen Stanford’s billion dollar Ponzi scheme was uncovered in 2009, investors are finally getting some of their money back.

Victims of Texas financier Allen Stanford are finally seeing compensation from his Ponzi scheme. The law firm that once represented the now-imprisoned Stanford reached a settlement for $35 million with the victims. The Ponzi scheme is estimated to have been worth $7.2 billion.

  
What
Where


Read Prosecutors Want 230 Years for Allen Stanford – Defense wants 44 months to learn more.

Chadbourne & Parke and Proskauer Rose reached the settlement despite a federal appeals court determining they were immune under Texas law from any liability from the scheme. Around 18,000 former investors of Stanford sued the two law firms for the work swindler Thomas Sjoblom did. Sjoblom was a lawyer at both law firms.

Read Supreme Court to Hear Appeals of Chadbourne & Parke and Proskauer Rose in Allen Stanford Matter.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The claim by the investors was that the law firms ignored Stanford’s sale of high-yield certificates of deposit that went through his Antigua-based Stanford International Bank. The certificates were fraudulent. They also claim the firms obstructed an investigation by the U.S. Securities and Exchange Commission into the activity.

Stanford is serving a 110 year prison sentence after being found guilty of fraud four years ago. The scheme was discovered in 2009.



See Lawyers for R. Allen Stanford Request Withdrawal from Case.

Chadbourne is not admitting any wrongdoing with the settlement, which must still be approved by U.S. District Judge David Godbey in Dallas, Texas. The settlement resolves claims by Ralph Janvey, a court-appointed receiver by Stanford’s companies and an investors committee to recover money for the creditors. Godbey dismissed other claims brought by the investors against former Stanford general counsel Mauricio Alvarado.

Source: http://www.businessinsurance.com/article/20160510/NEWS06/160519976/law-firm-reaches-35-million-settlement-in-ponzi-scheme-texas

Photo: abcnews.go.com



 

RELEVANT JOBS

Compliance Associate

USA-NY-New York City

About Us: New datasets are being created every day and investors need to incorporate them to rema...

Apply now

Legal Assistant

USA-FL-Boynton Beach

Are you looking to expand your knowledge and experience in the legal world? If so, come join our ama...

Apply now

Personal Injury Attorney

USA-FL-Boynton Beach

Come join one of the fastest growing and successful injury law firms in Florida! Frankl Kominsky ...

Apply now

Litigation Paralegal

USA-CO-Colorado Springs

Seeking Litigation Paralegal for Personal Injury Law Firm Vigil and Alford, PLLC is seeking a par...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

BCG Attorney Search In-House Counsel

USA-CA-Los Angeles

BCG Attorney Search In-House Counsel We are a Legal Employment Company located in California with o...

Apply Now

FDA Regulatory Attorney

USA-MA-Boston

Boston office of a BCG Attorney Search Top Ranked Law Firm seeks FDA regulatory attorney with 3-4 ye...

Apply Now

Foreclosure/Bankruptcy Associate Attorney

USA-CA-Temecula

Temecula office of our client seeks associate attorney with preferably 2 years of experience working...

Apply Now

SEARCH IN ARCHIVE

To Top