Stanford Ponzi Investors Lose After Failing to Show SEI Control

A group of investors who lost money in the $7 billion R. Allen Stanford Ponzi scheme lost their bid to hold two financial services firms liable because the firms didn’t control Stanford’s company, according to a Louisiana federal district judge’s ruling.

The investors, who opted out of an earlier class suit that wound up in the same court, “emphasize[d] the ‘intensely factual’ nature of determining whether a party is a control person, but ultimately fail[ed] to provide evidence that would include such facts,” the U.S. District Court for the Middle District of Louisiana said Jan. 24. The court shut down ...