UPDATE: Judge blocks Stanford investors from suing former advisers

By NEMS Daily Journal

DALLAS, Texas – Investors allegedly swindled by indicted financier R. Allen Stanford can’t sue their former Stanford Financial Group Co. brokers over losses on Antiguan bank certificates, a federal judge ruled Tuesday.

U.S. District Judge David Godbey in Dallas blocked investors from proceeding with lawsuits against any Stanford Financial Group company or former employee of Stanford’s organization.

Godbey said that only Ralph Janvey, the court-appointed receiver for Stanford’s businesses, may sue the company’s former financial advisers for now. Godbey said all other lawsuits must wait until after Janvey’s suit against the brokers, which is pending in Dallas federal court, is resolved.

Several Mississippi investors who lost hundreds of thousands, even millions of dollars, in CD purchases have sued former advisers such as Neal Clement and John Mark Holliday of Tupelo, and Robert Lenoir of Jackson, asking for return of their money. Stanford had offices in Tupelo and Jackson.

The advisers, so far, deny any wrongdoing and insist the issues should go to arbitration.

For more details, read Wednesday’s Daily Journal.