5th Circ. Affirms Stanford Ponzi Victims’ FINRA Loss

The Fifth Circuit on Friday affirmed a lower court’s ruling confirming a Financial Industry Regulatory Authority arbitral panel’s award that cleared financial services provider Pershing LLC of liability for $80 million in damages sustained by victims of R. Allen Stanford’s Ponzi scheme.

The appellate panel said in a brisk, five-sentence opinion that U.S. District Judge Lance M. Africk was right to uphold the FINRA panel’s decision that Pershing, the clearing broker for one of Stanford’s business entities, was not on the line for losses that a…

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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum https://www.tapatalk.com/groups/sivg/



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Arbitration. Vacatur. District court refuses to set aside arbitration award based on panel’s document discovery rulings.

In Pershing, the defendant, Pershing LLC, sought to confirm an arbitration panel’s decision that it was not liable to a consortium of Louisiana Retirees who fell victim to a Ponzi scheme orchestrated by R. Allen Stanford. The Louisiana Retirees sought to vacate the award.

Pershing was a clearing broker for Stanford Group Company, a broker-dealer controlled by Allen Stanford that sold worthless securities to the Louisiana Retirees. The Louisiana Retirees claimed that Pershing failed to exercise due diligence in its relationship with Stanford that would have uncovered the scheme. The arbitration panel ruled in Pershing’s favor, and the parties then brought competing actions in the district court to confirm or vacate the decision under the Federal Arbitration Act.

To view the full article click Here.

For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/