WASHINGTON, CMC – The United States Supreme Court has begun debate on the reach of the federal securities laws by questioning whether investors can sue law firms and outside companies for their alleged roles in jailed Texas financier Allen Stanford’s US $7 billion Ponzi scheme.
Stanford is currently serving a 110-year sentence in a US federal prison for masterminding the scheme for more than two decades, offering fraudulent high-interest certificates of deposit at his Antigua-based Stanford International Bank (SIB).
On the first day of its new term on Monday, the US Supreme Court heard arguments in a class-action case that involves investors who were unable to get their money back from Stanford and his companies.