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Wednesday, December 15, 2010

Kachroo Legal Services - Statement To The Stanford Investors

Investors defrauded by the Stanford Ponzi Scheme

We recommend that all Stanford investors file a U.S. Securities and Exchange Commission (SEC) administrative claim under the Federal Tort Claims Act (FTCA) through Kachroo Legal Services, P.C. (KLS) as soon as possible and no later than February 16, 2011. Due to the statute of limitations KLS will prepare to file the class action suit within six (6) months after that date. It is recommended that investors submit their information to KLS well before this deadline to ensure their claims are timely processed. KLS will file a class action lawsuit against the SEC (similar to a normal class action but in this instance only for those investors for whom KLS has filed an SEC administrative claim). Only those clients who have filed an SEC administrative claim under the FTCA will be represented in the KLS class action. All investors would be represented by our class action, both domestic U.S. investors and international investors around the world affected by the SEC’s actions and omissions.
We anticipate filing thousands of claims (as there are over 20,000 investors into the Stanford Ponzi Scheme), so to ensure your claim is handled promptly, you should file as soon as possible.
We will help you by processing and filing your FTCA claim with the SEC. In addition, KLS will file a lawsuit against the SEC on behalf of everyone who has filed FTCA claims by the deadline.
All investors must sign the KLS engagement letter attached herewith in English or in Spanish. The cost for both the SEC administrative claim work and the lawsuit will be as follows per investor:
For investors who have invested less than $100,000 USD total through all their accounts - $500;
For investors who have invested between $100,000 USD and $1million USD - $1000;
For investors who have invested more than $1million USD through all their accounts - $1500.
This will be the only cost per investor for all such legal services other than a contingency fee of $15% of the recovery obtained by KLS as well as reasonable costs and expenses of the litigation.

Why Choose KLS?
1. Dr. Kachroo, Principal of KLS, is also Vice-Chairman of the Global Alliance, a civil society whose members hip consists of 5000 attorneys from around the world.

2. KLS has experience working closely with the SEC and their offices. We are currently in discussions with the SEC to establish the Madoff Task Force and develop an alternative dispute resolution mechanism to settle cases against implicated financial institutions.

3. As a part of the Markopolos team, Dr. Kachroo represented the whistleblower that first discovered the Madoff fraud and exposed the SEC. From this experience, she has gained better insight into the possible legal recourses for Madoff victims. Due to our involvement in the various SEC investigations into ponzi schemes including the Stanford Ponzi Scheme, we have first-hand knowledge of the SEC’s involvement and the OIG’s report to succeed in a potential litigation.

4. With our track record of helping Madoff victims and our wealth of experience in this matter, we are confident that our litigation strategy under the Federal Tort Claims Act (FTCA) has the highest likelihood of obtaining a recovery from the U.S. Government.

5. So far neither plaintiffs nor attorneys for plaintiffs have obtained specific information that supports more than the negligence of the SEC in its investigation. KLS believes it is critical to a successful action against the SEC that further information, which it is optimally positioned to obtain, and which it is currently researching is unveiled as to the conduct of SEC investigations in this case.

6. Confidentiality. The class action will provide some level of anonymity in any action we take. We will attempt to limit discovery to the named plaintiffs only.
Benefits of KLS Proposal
Joining the class action through the SEC administrative claim is a low cost and highly efficient method of litigating to recover your losses.
The more investors that join through this process, the greater the pressure exerted on the SEC to reach an equitable settlement.
You will receive regular updates of our progress and on other related legal actions.
KLS Update on Current Situation in US Courts
There are two cases currently pending that involve Federal Tort Claims Act (“FTCA”) claims against the SEC for its handling of the Madoff Ponzi scheme. The first was filed in the United States District Court for the Southern District of New York on October 14, 2009. See Phyllis Molchatsky, et al. v. United States, case no. 1:09-cv-08697 (LTS). Briefing on the Motion to Dismiss for lack of jurisdiction was completed on June 11, 2010.[1]
The second case was filed in the United States District Court for the Central District of California on December 10, 2009. See Dichter-Mad Family Partners, LLP, et al. v. United States of America, et al., case no. 09-9061. On April 20, 2010, the Court granted Defendant’s Motion to Dismiss for lack of jurisdiction, but provided that “Plaintiffs may file an amended complaint containing new allegations that are reasonably aimed at satisfying Plaintiffs burden as described in this Order.”
These second plaintiffs filed an Amended Complaint on May 17, 2010 (re-filed on May 20, 2010) on the basis of a submission of ‘a document that contains or identifies the mandatory duties that SEC employees failed to follow in their investigations and failures to investigate Madoff’. These plaintiffs were specifically ‘informed by an SEC employee that this document contains mandatory conduct guidelines, duties and policies for SEC employees and it is entitled “The SEC Policies, Procedures and Administrative Regulations.”
In addition with regard to class issues: In June 2009, the District Court for the Eastern District of Louisiana issued an opinion in the Katrina Canal Breaches Consolidated Litigation allowing plaintiffs’ claims under the Federal Tort Claims Act (“FTCA”) to proceed as a class action. The court held that “a class action can be alleged under the FTCA as long as the administrative claim requirements are fulfilled.” In re Katrina Canal Breaches Consolidated Litigation, 2009 U.S. Dist. LEXIS 48837, 265 (E.D.La.). Thus, we would be able to proceed as class action (subject to certification) for all investors who timely file their claims against the Securities Exchange Commission (“SEC”) within the two year period, i.e., by February 16, 2011.
The FTCA provides that the government entity against whom the claim is made (here, the SEC) has six months to respond to the administrative claim. The claimant’s right to sue in court vests once the claimant receives the SEC’s denial of the administrative claim, or six months after the administrative claim is filed, if the SEC fails to respond. Thus, we would define the class to include those investors who (i) file a claim within the two year period and (ii) either receive a denial from the SEC or do not receive a response from the SEC within the six month period.

Concluding Thoughts
The time window for you to join this lawsuit is limited due to the statute of limitations. We are offering a cost effective and efficient method for you to file your claim so that you will benefit from any positive settlement.
We urge all of you to notify other investors to get in touch with us without delay so that we may get all claims in by February 16, 2011.
We shall advance all expenses including but not limited to any expenses incurred by you related to depositions or any other legal proceedings we advise you to attend, including travel expenses.
The sole contingent fee upon which we shall be compensated from the Recovery shall be in the amount awarded by settlement or a judgment of a Court of law. We are seeking a contingency of 15% of the recovery plus reasonable expenses.

Please contact KLS at or by phone at:
Dr. G. Kachroo : +1 617-864-0755
for further information about KLS, please go to

1 comment:

  1. Nice post. Its good to read blogs like this and gain some knowledge about the legal services. Its very useful for all thanks for the post.
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