The Associated Press
DALLAS – The court-appointed receiver in charge of companies owned by troubled Texas billionaire R. Allen Stanford has filed a $40 million lawsuit against 66 former financial advisers.
Texas attorney Ralph Janvey said in a statement Wednesday that he is trying to recover more than $40 million paid out to former financial advisers for Stanford Financial Group. That money was paid to them as commissions, loans and compensation for advising clients to buy certificates of deposit at Stanford International Bank.
Those CDs are at the heart of what the federal government says is an $8 billion fraud committed by Stanford and his company’s top financial officer.
Stanford has said he is innocent of orchestrating what the Securities and Exchange Commission called “a massive Ponzi scheme.”