SEC being sued over failure to act on Ponzi
Posted: Sat Sep 08, 2012 9:35 am
According to a Bloomberg article the SEC is being sued for failing to act after it had determined R. Allen Stanford was operating a Ponzi scheme out of Stanford International Bank based in Antigua.
The judge ruled that the SEC "was obligated to report Stanford's company to the Securities Investor Protection Corp." and "This obligation to report was not discretionary because the controlling statute mandates that the report be made." The judge ruled that the case could go to trial.
The judge ruled that the SEC "was obligated to report Stanford's company to the Securities Investor Protection Corp." and "This obligation to report was not discretionary because the controlling statute mandates that the report be made." The judge ruled that the case could go to trial.