Stanford International Bank, Ltd. (SIB) was one of several entities within the Stanford Financial Group (SFG). SIB issued Certificates of Deposit to those seeking a safe investment and a dependable return. However, the opposite occurred. Recently, at the request of the Securities and Exchange Commission, a federal court in Dallas appointed a receiver to take over the assets of the organization. Investors are left without payments and wondering what to do.
On Monday, February 23, 2009, Abraham, Watkins, Nichols, Agosto, Aziz & Stogner filed suit in Harris County, Texas seeking to protect and enforce the rights of four specific investors. The case was assigned to Judge Sylvia Matthews in the 281st District Court. On Tuesday, the firm filed an amended petition adding two more investors as plaintiffs in the suit. The defendants in the case include SIB, SFG, Stanford Capital Management, LLC, Stanford Venture Capital Holdings, Inc., Stanford Group Holdings, Inc., R. Allen Stanford, James M. Davis, D. Mark Tidwell, Laura Pendergest-Holt, Michael Zarich, and Jay Comeaux. The suit papers allege that the Stanford companies and executives represented that the CDs were “a safe investment and that SIB invests the funds primarily in liquid investments.” The plaintiffs purchased the CDs based on those representations; now, they cannot obtain any of their funds. The suit also alleges breach of fiduciary duty on the part of the defendants. It seeks unspecified damages, attorney’s fees, exemplary damages, and rescission.
The firm has previously sued Stanford, and has taken the depositions of several of its executives. This will assist us to understand the organizational structure and personalities involved in this fraud as we prosecute claims against Stanford on behalf of the investors. It is our plan to aggressively protect the investments of our clients.