UPDATE: New lawsuit says others helped perpetrate investor fraud in Stanford case

SAN ANTONIO, Texas – Ninety-seven former Stanford investors sued Monday in a San Antonio state court for almost $80 million in damages against insurance brokers Willis Group Holdings Ltd. and Bowen, Miclette & Britt Inc., and a trust company, Aleman Cordero, Galino & Lee, affiliated with a Panamanian law firm.

“Allen Stanford didn’t build this bank all by himself,” iStockAnalyst.com quotes lead attorney Randy Pulman. “He had help. Companies like Willis, Bowen Miclette and the Aleman Firm and trust company were too close to the action at Stanford International Bank to avoid responsibility for this debacle.”

Stanford and other executives are accused of masterminding a $7 billion Ponzi scheme through the Antigua-based bank. They have pleaded not guilty, except former Chief Financial Officer James Davis of Baldwyn, who faces 30 years in prison.

No trial date is set for the others in Texas U.S. District Court.

The new lawsuit against the insurance brokers seeks to hold them responsible for “safety and security” letters they sent to the plantiffs (former investors) saying that deposits at SIBL were protected by insurance and that the bank was made up of “first class business people.”

Similar action is being taken by others against Kroll Inc., an investment analyst, for reporting the same thing.

The lawsuit also seeks damages from several individual employees of the companies and at Stanford Fiduciary Investor Services and Stanford Trust Co., alleging they are liable for securities fraud. (“From the Front Row” is seeking a copy of this lawsuit for more details.)

Read multiple news updates on the Stanford scandal at Patsy’s blog, From the Front Row, on NEMS360.com.

Patsy Brumfield/Daily Journal