According to civil charges filed by the U.S. Securities and Exchange Commission (SEC), R. Allen Stanford, the Stanford Financial Group and Stanford Capital Management defrauded investors worldwide, resulting in losses of over $9 billion.
Stanford International Bank attracted investors by offering above-market returns on CDs that were not insured by the U.S. Federal Deposit Insurance Corporation (FDIC). The SEC has alleged that the bank put the money largely into real estate and private equity, and misrepresented its portfolio to lure more customers.
This was not the first time allegations of fraud by Stanford International Bank had been raised. In 2005, two Venezuelans alleged in U.S. District Court in Florida that Stanford International Bank "knowingly aided and abetted ... a classic Ponzi scheme" targeting current and former residents of Venezuela. In 2006, former Stanford employee Lawrence J. DeMaria filed suit against Stanford in Florida state court. He alleged that the firm "was operating a 'Ponzi' or pyramid scheme, taking new money to its offshore bank, laundering the money and using the money to finance its growing brokerage business, which did not have any profits of its own." Both suits were subsequently settled on confidential terms.
The impact of the Stanford Group fraud has been widespread in the U.S. and Latin America and the Caribbean. For instance, at least $3 billion of the fraudulent certificates of deposit were sold to Venezuelans.
Contact Lieff Cabraser
Given the wide dispersion of affected investors across the world, and the size of the average amounts invested, a class action may be the most effective method of achieving recovery for all those affected. Under the United States securities laws, the investor or group of investors with the largest financial interest in the litigation (meaning the largest losses from their Stanford investments) will most likely be selected to be the lead plaintiff, with the responsibility of acting as a representative on behalf of the entire class of affected investors. Lieff Cabraser is interested in speaking with investors who fit this profile and who may be interested in acting as lead plaintiff in the class litigation in the United States. Accordingly, any investors who have lost $2 million or more in the alleged Ponzi scheme perpetrated by the various Stanford entities are welcome to contact Lieff Cabraser for a confidential review of their claims without charge or obligation.
We are also interested in hearing from persons with information about third parties or intermediaries involved with Stanford, such as funds, banks, or brokerage firms that guided investors to Stanford, or auditors.
If you have lost $2 million or more as a result of your investments in Stanford CDs, or if you have knowledge regarding third parties, please click here to contact a Lieff Cabraser financial fraud attorney or call attorney Lexi Hazam or Sharon Lee in San Francisco at 800-541-7358.
About Lieff Cabraser
Described by The American Lawyer as "one of the nation's premier plaintiffs' firms," Lieff Cabraser Heimann & Bernstein, LLP, is a 50-plus attorney, AV-rated law firm with offices in San Francisco, New York, and Nashville. Since 2003, The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation. In compiling the list, the Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs' law firms in the United States to receive this honor for the last seven consecutive years.
Lieff Cabraser possesses an impressive track record of successfully representing high-wealth individuals and other investors in securities and financial fraud cases, including cases arising out of Ponzi and other fraudulent schemes. Learn more about our firm.
