Appeals Court Shields SEC from Negligence Claims Over Stanford Ponzi Scheme
The Eleventh Circuit on Monday affirmed a Florida district court’s decision to shield the U.S.. Securities and Exchange Commission (SEC) from a negligence-based lawsuit brought by two victims of Robert Allen Stanford’s $7 billion Ponzi scheme. The appeals court’s ruling stated the lower court correctly applied exceptions in the Federal Tort Claims Act to bar the claims.
The Eleventh Circuit’s three-judge panel not only agreed with the lower court’s application of the tort claims exceptions but also found that even without the exceptions, the Plaintiffs failed to meet other pleading requirements when bringing a tort claim against the federal government (the pleading did not provide an analogous state law).
The experienced securities fraud attorneys at Colling Gilbert Wright & Carter are have successfully filed and litigated hundreds of securities related tort claims. If you believe your broker or financial advisor has breached his fiduciary duties or was negligent in the handling of your account, please contact us for a free case evaluation.