|A third lawsuit in as many months has been filed in state district court in Baton Rouge against Stanford Group Co. financial advisers in Baton Rouge and Houston.
Like the others before it, the latest lawsuit claims investors lost money in an alleged Ponzi scheme of Texas billionaire R. Allen Stanford.
A Ponzi scheme pays money from early investors to those that follow until it collapses.
The Securities and Exchange Commission contends Stanford defrauded investors of $9 billion. Stanford’s attorneys have denied he operated such a scheme.
Stanford financial adviser Jason Green, of Baton Rouge, is named as a defendant in all three suits filed in the 19th Judicial District Court.
Green had the first suit, filed in March, transferred to federal district court in Baton Rouge.
The suits claim Green and other Stanford advisers helped steer investors’ money to certificates of deposit at the Stanford International Bank on the Caribbean island of Antigua.
Green has said in a federal court filing that he and the other advisers would not have had clients purchase CDs at Stanford International Bank if they had known its operation was not in accordance with U.S. laws.
Other Stanford investment advisers named in the latest suit, filed Friday, are Grady Layfield, Hank Mills, Dirk Harris, Timothy E. Parsons, Charles Jantzi and John Schwab, all of Baton Rouge; Tiffany Angelle, of Lafayette; James Fontenot, of Denham Springs; and Jay Comeaux and Alvaro Trullenque, of Houston.
The plaintiff investors are Kendall Forbes, Robert Graham, Jason Graham, Ronald Marston and Dr. Steve Wilson, all of Baton Rouge; Rodney Starkey, of Independence; Daniel Landry, of Napoleonville; Mary Ann Paternostro, of New Orleans; Jean Anne Mayhall, John R. Wade and G. Rogers Smith, all of Folsom; Cynthia R. Dore, of Lafayette; and Dr. Ralph C. Damore, of Greenwood, S.C.
The suit alleges negligence, breach of contract and fiduciary duty, and unfair trade practices on the part of the defendants and seeks an unspecified amount of damages.
The suit has been assigned to state District Judge Todd Hernandez.
RECEIVER’S SUPPLEMENTAL COMPLAINT AGAINST STANFORD FINANCIAL GROUP ADVISORS – Filed 08/26/2009
Financial advisers in BR accused of negligence