Four members of the Paschal family of Louisville and their business, Price Paschal Lumber Co., have sued a former Stanford Group Co. securities broker for $26.8 million they say they lost when the international financial company crashed under a federal investigation last February.
They do not accuse Robert David Haggard of Altanta, Ga., of fraud but with four counts of violating Mississippi and U.S. laws about making untrue or misleading statements, as well as negligence in his responsibilities to them.
Plaintiffs are John Taylor Paschal and Suzanne Paschal of Louisville, Mary Edith Shapley of Jackson, Edith Paschal of Louisville and Price Paschal Lumber Co. Inc. of Brandon.
Their lawsuit was filed Aug. 10 in the U.S. District Court of the Northern District of Mississippi and appears to be the first filed in this federal court to recoup losses from the demise of the Stanford financial empire when the Securities & Exchange Commission sued and had all its assets frozen in the wake of fraud allegations.
Stanford’s Tupelo office closed soon after the federal accusations.
Subsequently, Stanford’s top executives – including two Baldwyn residents – were formally accused of wrongdoing amid allegations they helped mastermind a $7 billion Ponzi scheme upon some 30,000 investors. Four await trial in a Houston, Texas, court.
But the Paschal lawsuit doesn’t go after these people or even allege that broker Haggard is liable for that alleged fraud.
Haggard was not available for a comment Wednesday. A complaint is just one side of a lawsuit.
Judge Sharion Aycock and Magistrate Judge Jerry A. Davis were assigned to the case.
Read more in Thursday’s Daily Journal. Catch Patsy’s blog, From the Front Row, on NEMS360.com.
Patsy Brumfield/NEMS Daily Journal