Las víctimas olvidadas de Stanford ahora disponible en español

Las víctimas olvidadas de Stanford, ahora disponible en español en:

Thursday, January 21, 2016

Two Respected Law Firms Fight Claims That They Aided Ponzi Schemer

Robert Allen Stanford, once one of the richest men in America, is today a federal inmate serving a 110-year sentence. His crimes? Running a massive Ponzi scheme that stole over billions of dollars from thousands of unsuspecting investors. How this once bankrupt gym owner could pull off such a heinous crime is a great topic for a future story. This post examines the battle to hold Stanford’s former lawyers responsible for his losses.

As fraud recovery lawyers, we are often called upon to seek alternative sources of funds for victims. Fraudsters often are uncollectible, especially when serving 110-year prison terms. Often, however, banks and lawyers can be held responsible for monies lost by investors; especially when their actions (or inactions) helped facilitate the crime.

Seeking third party recovery is especially important in the Stanford case. The court’s receiver charged with gathering and liquidating Stanford’s assets found that Stanford spent much of the stolen funds. In just three years, Stanford spent over $100 million on private aircraft. In another instance he spent $12 million to lengthen his yacht by just 6 feet!

Investors have seen little money despite the thought that some $7 billion passed through Stanford’s hands and that of the entities he controlled. That puts pressure on efforts to collect from banks, audit firms and lawyers. Two law firms that have been sued are Greenberg Traurig and Hunton & Williams LLP. Both firms are giants in the legal industry and have very deep pockets. Greenberg Traurig has approximately 1900 lawyers and is headquartered in Miami. Hunton & Williams is a Richmond based firm with 800 lawyers.

Both firms were sued in 2012. Stanford’s victims claim that the law firms helped perpetrate the fraud. For a Ponzi scheme so massive and so sophisticated, it is clear that Stanford didn’t act alone, but are the lawyers responsible? At the heart of the investors claims is attorney Carlos Loumiet. He served as counsel for the Stanford Financial Group of companies from 1988 until 2009. For thirteen of those years he was a partner at Greenberg Traurig. In 2001, Loumiet left and went to work at Hunton & Williams. Stanford remained his client there.

Read the Entire Article here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group - SIVG official Forum

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