Allen Stanford Ponzi Clients Sue Insurance Broker Willis Group _ Reuters

8/9/2019 Allen Stanford Ponzi Clients Sue Insurance Broker Willis Group _ Reuters

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ord clients sue insurance broker Willis Group | Reuters

www.reuters.com/article/2009/07/03/us-stanford-willis-idUSTRE5624SE20090703[2/10/2015 6:25:01 AM]

NEW YORK Fri Jul 3, 2009 4:48pm EDT

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the line from being mere insurance brokers" to essentially acting

as sales agents for Stanford.

The investors are seeking more than $1 billion in damages from

Willis, which is domiciled in Bermuda and has large operations

in New York and London. A Willis spokeswoman was not

immediately available on Friday to

comment on the case.

Stanford founder Allen Stanford, a Texas billionaire, and others face criminal and civil

charges related to what U.S. federal prosecutors have called a $7 billion Ponzi scheme

involving high-yielding certificates of deposits issued by his bank in Antigua.

Many Stanford customers were located throughout Latin America.

The lawsuit contends that Willis and other defendants provided Stanford Financial with

certain "safe and soundness" letters that were intended to be used for marketing purposes

to attract Stanford clients.

Willis lent recognition and credibility to Stanford's business, the lawsuit says.

The lawsuit was filed on Thursday by law firms Strasburger & Price LLP and Castillo Snyder

PC.

"We intend to prove that the defendants willfully misrepresented the safety of the financial

products offered by Stanford," attorney David Cibrian, one of the lawyers who brought the

case, said in a statement.

The lawsuit seeks class-action status on behalf of other Stanford investors.

Stanford Financial has been under control of a court-appointed receiver since February,

when the U.S. Securities and Exchange Commission sued Allen Stanford for civil fraud.

Federal prosecutors brought criminal charges against him and others last month.

Stanford has been ordered held without bail until trial, currently set for August. He had

spent the last 15 years living primarily in the Caribbean, where he was knighted by the

Antiguan government.

(Reporting by Martha Graybow ; Editing by Christian Wiessner)

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5/1-Year ARM 3.40% 3.33%

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Allen Stanford Ponzi Clients Sue Insurance Broker Willis Group _ Reuters

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