Stanford Investors Can’t Go After Clearing Broker for Ponzi Role

July 13, 2018, 8:26 PM UTC

Victims of R. Allen Stanford’s $7 billion Ponzi scheme were too slow to file suit against Stanford’s clearing broker, financial services firm Pershing LLC, a federal court said.

Investors in the Stanford scheme waited too long to file suit against Pershing, so their claims can’t go forward, a federal judge said July 12, when he found in the clearing broker’s favor. Pershing said the investors’ claims against it were time-barred, and the U.S. District Court for the Northern District of Texas agreed, granting summary judgment at the firm’s request.

The investors initially sued Pershing in a Florida district court for ...

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