Family Law

Susan Stanford files malpractice case against divorce attorneys

By Robert M. Kisselburgh, Esq.

Multimillion dollar lawsuit against divorce attorneys

Susan Stanford, wife of jailed Houston, Texas financier R. Allen Stanford, filed a malpractice lawsuit against her previous divorce attorneys alleging they failed to inform her of a $200 million dollar divorce settlement offer allegedly made in January, 2008. According to the lawsuit filed in Harris County, Texas, Susan filed for divorce from Stanford in 2007 and Allen Stanford's attorney made a verbal settlement offer of $200 million to settle the case. The offer was later withdrawn in February, 2009, at about the same time all the assets of Stanford Financial Group and R. Allen Stanford were frozen by U.S. District Judge David Godbey. Mrs. Stanford alleges that if she became aware of the offer, she would have accepted it. The interesting question is whether Ms. Stanford would have been able to keep any of those assets if she did settle the case given the current SEC action and its attempt to "claw back" the assets associated with Stanford Financial Group.

Stanford Financial Group has a Mississippi connection. Laura Pendergest-Holt, Stanford Financial Group's Chief Investment Officer, and James Davis, CFO of Stanford Financial Group, were both from Baldwyn, Mississippi. In August, James Davis plead guilty to fraud and obstruction of justice charges related to a $7 billion dollar scheme to defraud investors. Pendergest-Holt has pled not guilty to 21 felony counts of fraud, conspiracy and obstruction of justice.

Full post as published by Mississippi Family Law Blog on September 27, 2009 (boomark / email).