Ponzi Scheme Investors May Sue
Investors who lost billions in a notorious Ponzi scheme run by Texas financier Allen Stanford are lucky, it turns out, that the CDs they purchased were not “covered securities.”
That’s because the Supreme Court ruled 7-2 Wednesday that a law intended to assert federal jurisdiction over most securities fraud claims — which would deny investors relief in state courts — refers specifically to real, and not imagined, investments.
For more on this story visit: Richard Wolf, USA Today
Tags: Ponzi Scheme