SEC's failure to investigate Allen Stanford led to losses, investors claim

03/28/2011 | InvestmentNews (free registration)

Eight investors who lost money in R. Allen Stanford's operations have sued the Securities and Exchange Commission, arguing that the agency's negligence contributed to their losses. The investors say Stanford, who is suspected of running a Ponzi scheme, should have been investigated earlier. A 2010 report by the SEC inspector general faulted the agency's office in Fort Worth, Texas, for not acting soon enough.

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