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Monday, U.S. District Judge Ewing Werlein of Houston granted a request by Steven Cochell, a Stanford attorney, to dismiss the case filed last month.
The case was filed two years after the SEC accused the deposed Stanford Financial Group principal of leading an investment-fraud scheme. Stanford, who was indicted on parallel criminal charges in June 2009, has denied all allegations of wrongdoing.
Stanford 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.
The financier, who turned 61 Thursday, 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.
Stanford also had offices in Tupelo, Jackson and Memphis.