Allen Stanford drops lawsuit against government lawyers

R. Allen Stanford, the indicted financier, dropped a lawsuit that accused attorneys with the U.S. Justice Department and Securities and Exchange Commission of “abusive” law enforcement.
MAR 06, 2012
R. Allen Stanford, the indicted financier, dropped a lawsuit that accused attorneys with the U.S. Justice Department and Securities and Exchange Commission of “abusive” law enforcement. U.S. District Judge Ewing Werlein in Houston on March 21 granted a request by Steven Cochell, a Stanford attorney, to dismiss the case filed last month. Stanford had sought $7.2 billion in damages. The case was filed two years after the SEC accused the deposed Stanford Group Co. principal of leading a $7 billion investment-fraud scheme. Stanford, who was indicted on parallel criminal charges in June 2009, has denied all allegations of wrongdoing. “Plaintiff concludes that the claims in this action will be preserved without the pursuit of this case at this time,” Cochell said in his March 18 filing. Stanford had alleged the federal government used more than $51 million of his assets to pursue the cases against him. “The agents have engaged in unfair, abusive law-enforcement methods and tactics,” violating Stanford's rights under the U.S. Constitution, according to the complaint. Among the 12 individual defendants named in the lawsuit were lead prosecutors Paul Pelletier and Gregg Costa and lead SEC lawyer Stephen Korotash. Stanford didn't directly sue any agency of the federal government. Gag Order Laura Sweeney, a Justice Department spokeswoman, declined to comment, citing a gag order imposed in the criminal case by U.S. District Judge David Hittner. Kevin Callahan, an SEC spokesman, didn't immediately reply to voice-mail messages seeking comment. The financier, who turns 61 today, is being held without bail pending the outcome of his criminal trial and is undergoing treatment for a prescription drug addiction in the Federal Medical Center at the Butner Federal Correctional Complex in North Carolina. --Bloomberg News--

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.