Labor & Employment Law

Broker Commissions may save the day for Stanford Ponzi Scheme Investors

By Dobin & Jenks

Should brokers be able to keep profits from the alleged $8billion investment Ponzi scheme ran by Texan billionaire Sir Allen Stanford?

If the Court appointed Receiver, Ralph Janvey, has anything to do with it, this will not be the case. Janvey is seeking the return of the large commissions, bonuses, and other compensation paid by Sir Allen?s company for the sell of certificates of deposit, to 66 Financial advisers.

According to a lawsuit filed by Janvey, the unsuspecting customers that purchased CDs from the Brokers should be entitled to compensation. The Brokers involved, should not be entitled to compensation from the "elaborate and sophisticated? incentive program, since the services they were being compensated for, were not legitimate.

If Janvey prevails in this lawsuit, this will be a huge step in the right direction for investors involved in Stanford ponzi scheme and others around the country.

Read more on the Stanford Ponzi Scheme, by clicking on the following link to the article in the Financial Times, "Official seeks return of Stanford paid commissions" by Joanna Chung.

Full post as published by The Law Planet Blog on April 15, 2009 (boomark / email).