Proskauer Looks to Ditch Still-Pending Stanford Ponzi Suit

Ahead of an upcoming Dallas trial, Proskauer’s defense team filed a notice on Thursday with the U.S. Court of Appeals for the Fifth Circuit as part of an effort to escape claims from an official committee of investors who lost money in R. Allen Stanford’s massive, long-running Ponzi scheme.

Defense lawyers for Proskauer Rose have lodged a late-stage request for a federal appeals court to shut down a case accusing the firm and a former partner of helping R. Allen Stanford to conceal his massive Ponzi scheme from regulators.

Ahead of an upcoming Dallas trial, Proskauer, through its defense team at Davis Polk & Wardwell, filed a notice on Thursday with the U.S. Court of Appeals for the Fifth Circuit as part of an effort to escape claims from an official committee of investors in Stanford Financial Group—a collection of companies that Allen Stanford used to perpetrate a years-long, $7 billion fraud that landed him in prison on a 110-year sentence…………..

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



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Chadbourne Says Stanford Receiver Deal Nixes Investor Suit

Chadbourne & Parke LLP told a Texas federal judge on Wednesday that investors accusing it of facilitating Robert Allen Stanford’s $7 billion Ponzi scheme no longer have a viable claim after agreeing to a $35 million settlement and bar order with the receiver overseeing recovery for victims of the scheme.

The investors, the bulk of whom are Mexican citizens, claim Chadbourne as well as Proskauer Rose LLP and the firms’ attorneys aided the Ponzi scheme, in which Stanford’s foreign bank sold investors sham securities called certificates…

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



Investors file second class action against law firm for alleged role in Stanford Ponzi scheme

Last week, victims of Robert Allen Stanford’s Ponzi scheme filed another class action lawsuit against the law firm that, they allege, helped the former chairman and CEO conceal the fraudulent scheme from government regulators.

The named plaintiffs, Sandra Dorrell and Phillip A. Wilkinson, both Texas residents, filed their complaint in the U.S. District Court for the Northern District of Texas, Dallas Division, April 28.

The defendants include Proskauer Rose LLP, an international law firm that is headquartered in New York City and has 13 offices worldwide, and Thomas V. Sjoblom. Sjoblom was a partner at Proskauer from 2006 to 2009.

“All of the Plaintiffs and members of the putative class invested in the Stanford Financial Ponzi scheme by purchasing SIBL (Stanford International Bank Ltd.) CDs or placing their money in other investment accounts with SIBL,” the investors explained in their 96-page complaint. “Over the years that Plaintiffs and the members of the putative class purchased and maintained investments in SIBL, Plaintiffs and the members of the putative class were repeatedly and uniformly told, either directly by their Stanford Financial FAs or via Stanford Financial promotional materials, that, inter alia: (1) an investment in SIBL was safer than investing in U.S. banks because SIBL did not make loans but instead held its funds in a safe and highly liquid portfolio; (2) Stanford Financial was a U.S.-based business regulated by the U.S. Government; and (3) that an investment in SIBL was completely safe and secure because it was guaranteed and insured by Lloyd’s, was thoroughly regulated, was audited by an ‘outside’ audit firm and subjected to regular, ‘stringent’ risk management examinations.

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



Chadborne Pays $35M in Stanford Ponzi Suit; Proskauer Faces New Class Action

Two months after a federal appeals court rejected their case, investors who lost billions in a Ponzi scheme orchestrated by R. Allen Stanford have filed a brand-new class action against the company’s former outside counsel at Proskauer Rose.

The move comes as Chadbourne & Parke, which also once counted Antigua-based Stanford Group as a client, has agreed to pay $35 million to resolve parallel investor claims. (The settlement was first reported in February, but the size of the deal was not known.) If the settlement is approved, the funds, minus a contingency fee, will be distributed among investors who bought bogus Stanford CDs.

The new case against , meanwhile, landed Friday in federal district court in Dallas, claiming $5 billion in damages. Once again, the plaintiffs are looking to hold Proskauer responsible for the actions of its former partner, Thomas Sjoblom, who allegedly helped Stanford conceal his Ponzi scheme from regulators.

Sjoblom, who joined Proskauer from Chadbourne in 2006 and represented Stanford’s company while at both firms, is also named as a defendant.

The U.S. Court of Appeals for the Fifth Circuit dismissed the original case against Proskauer on March 10, following six years of litigation and two trips through the appeals courts. The panel found that, under Texas law, an attorney is shielded from liability if the alleged wrongdoing occurred while he was defending a client.

But according to Friday’s complaint, the Fifth Circuit’s decision also left open a narrow window for the plaintiffs to sue again under Texas’ Securities Act. Their 99-page complaint, filed by Edward Snyder of San Antonio-based Castillo Snyder and cocounsel Strasburger Price on behalf of a putative class of 21,000 Stanford investors, hopes to take advantage of that window………………

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/



Stanford Investors Suing Proskauer, Chadbourne Seek Cert.

Investors accusing Chadbourne & Parke LLP, Proskauer Rose LLP, two insurance brokers and a financial services firm of aiding Robert Allen Stanford’s Ponzi scheme urged a Texas federal judge on Monday to grant class certification in their malpractice action.

Investors led by Mexican citizen Samuel Troice argued that from at least 1988 until 2009 Stanford engaged in a common course of conduct and uniform scheme to dodge the federal government’s banking and securities laws. Stanford uniformly failed to disclose his illegal conduct or tell investors that…

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/




Chadbourne, Proskauer Renew Bid For Class Info In Ponzi Suit

Chadbourne & Parke LLP and Proskauer Rose LLP are redoubling their fight for documents in the possession of the receiver for Allen Stanford’s Ponzi scheme that they say will reveal important information about a proposed class of plaintiffs suing the law firms for malpractice.

The two law firms, defendants in a suit brought by victims of Robert Allen Stanford’s $7 billion Ponzi scheme, say receiver Ralph Janvey should have to give them information about who is in the class.

“To date, defendants have received no discovery…

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/