Wednesday, 1 October 2014
Last updated 12 hours ago
Mar 4 2014 | 9:30am ET
The U.S. Supreme Court has ruled that Ponzi scheme victims can go after a fraudster’s service providers in state court.
The high court found that victims of R. Allen Stanford’s $7 billion fraud are free to bring their class-action suits in state court, where they believe they have a better chance of success. The 19-page ruling, written by Justice Stephen Breyer, gives Stanford victims a chance to recover more of their lost money, but is limited to Ponzi schemes—and limited further to products that aren’t considered securities.
The decision “will permit victims of this (and similar) frauds to recover damages under state law,” Breyer wrote.
The ruling found an exception in a 1998 federal law prohibiting many class-action fraud lawsuits from state court. Breyer, in the 7-2 decision, said that law does not cover when the securities allegedly involved weren’t real and weren’t traded on national markets.
Stanford investors are now free to go after his law firms, service providers and insurance brokers, including SEI Investments.
Justices Anthony Kennedy and Samuel Alito dissented from the majority opinion, arguing that Stanford’s fraud was “in connection with the purchase or sale of a covered security” and therefore regulated under the law.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
High frequency trading is not evil, it is not a conspiracy and it really is not new; it is the natural evolution of the professional trading community making markets, providing liquidity and hopefully...