Stanford Receiver Sues 66 Former Employees
The court-appointed receiver in the case of Texas financier R. Allen Stanford is suing 66 former employees of the firm, trying to recover $40 million dollars for victims of the alleged scam.
The employees were all financial advisors for Stanford. The suit, filed by receiver Ralph Janvey, claims the advisors were paid huge commissions for selling fraudulent certificates of deposit to clients.
The Securities and Exchange Commission has charged those CDs were at the heart of Stanford's alleged $8 billion Ponzi scheme, a charge Stanford has denied.
The suit says all 66 advisors have assets that can be traced to the alleged fraud. The suit asks that the advisors be forced to turn over all of their commissions to Janvey to be distributed to investors.Stanford has not been charged with any criminal wrongdoing in the case.
A Justice Department investigation is ongoing.