Texas law firms Strasburger & Price and Castillo Snyder opened a new front Thursday in the legal battles over Stanford Financial Group, the company R. Allen Stanford allegedly used to chisel billions of dollars from unwitting investors. In a federal class action filed in Dallas on behalf of Mexican investors, the lawyers accused U.K. insurance giant Willis Group Holdings and smaller Texas insurance broker Bowen, Miclette & Britt of aiding Stanford’s alleged fraud by vouching for his investments.

The complaint states that the defendants gave Stanford Financial “safety and soundness” letters designed to help it market its investments. “Willis and BMB crossed the line from being mere insurance brokers for the Stanford Financial Group,” the complaint alleges. “In creating and submitting these letters into the stream of commerce, [the defendants] actively and materially aided Stanford Financial to perpetrate the massive Ponzi scheme now alleged by the SEC.” The plaintiffs are seeking damages of more than $1 billion.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]