Stanford Financial Group and its owners have been charged with running a huge Ponzi scheme. Millions of dollars are still hidden by the company. The main guy, Allen Stanford, borrowed $ 1,600,000,000 of the company's assets, but $6,000,000,000 is still missing. The Securities and Exchange Commision accused them of misappropriating billions of dollars of investor's money and then lying about financial statements to cover up their actions. The SEC also alleged that Stanford lied about its bank's certificate of deposits promising unbelievable rates of return. This is the second high-profile Ponzi scheme which is similiar to the Madoff scheme which involved over $50 billion.
Investors in Mississippi have over $391,000,000 under Stanford's control, but their accounts have been frozen.
If a company's executives intentionally hide profits, losses, debts, or other financial transactions, shareholder fraud occurs. Shareholders do not buy stock in companies with suspicious activity. The executives may try to cover up shady deals in order to get or keep investors. They may offer interest rates that are double or triple the going rate so that shareholders think they are getting a great deal when in actuality, they are just being mislead. One of the most recent examples of shareholder fraud is the case of the financial giant Enron, which defrauded investors out of billions of dollars. Many have lost everything, including their life savings or retirements. If you are a victim of shareholder fraud, you have a right to file suit against the company that deceived you. Please call us today if you have been victimized by shareholder fraud.
When a brokerage firm has cash and securities that are missing from customer accounts, a receiver is usually appointed to liquidate the firm and protect its customers. Sometimes SIPC deals directly with customers. Stocks, bonds, cash and other securities at a troubled brokerage firm are protected by SIPC. If sufficient funds are not available, the reserve funds of SIPC are used up to a ceiling of $500,000 per customer, including a maximum of $100,000 for cash claims. Additional funds may be available to satisfy the remainder of customer claims after the cost of liquidating the brokerage firm is taken into account. The financial worth of a customer's account is calculated as of the "filing date." Stocks and other securities owned by a customer are returned.
The Law Offices of Paul Snow has experience in handling investor fraud claims. The SIPC often objects to claims, and the claims process is handled in court. Therefore, it is important that you hire an attorney to file your SIPC claims. Paul Snow works on a contingency fee basis which means that no fees are paid unless there is a recovery for you. Call Paul Snow, a MS attorney 1-800-640-4478 for your free consultation today.
For filing a claim against Madoff go to www.madofftrustee.com, deadline is March 4,2009, for customer claims and July 2,2009 for all other claims.