National Class Action Lawsuit Against Stanford Group Company filed by Pendley, Baudin & Coffin

Baton Rouge, Louisiana, February 20, 2009 – The lawyers of Pendley, Baudin & Coffin filed a national class action lawsuit suit today against Stanford Group Company, an investment firm, and several of its affiliates, alleging violations of federal securities laws and seeking compensation for individuals and entities who made investments through the Stanford Group. The suit was filed in federal court in Baton Rouge and makes similar claims to those made by the U.S. Securities and Exchange Commission earlier this week.

On Tuesday, federal authorities descended on the Stanford Group Company's headquarters to halt what regulators dubbed as an operation of “massive ongoing fraud.”   The claims raised in the class action suit against the bank’s chairman and CEO, Robert Allen Stanford and his colleagues include conning investors into purchasing high-yielding certificates of deposit, claiming they were liquid assets and safe investments.  Additionally, they stated that higher rates could be paid on the CD’s due to lofty returns made off of investor assets.  However, according to the Security and Exchange Commission (S.E.C.), none of this was true.

Customers of The Stanford Group are extremely concerned as they question what happened to their savings. Earlier in the week, people stood in line at Stanford’s Bank of Antigua branch in the Caribbean to withdraw their money as the news spread.  In reference to the situation, Chris Coffin, one of the partners in Pendley, Baudin & Coffin stated, "The fraudulent behavior of the Stanford Group has affected thousands of investors throughout Louisiana and the United States. Those who suffer losses as a result of this fraud should be entitled to a recovery." 

The Stanford Group claims assets of $8.5 billion and 30,000 clients in 131 countries.  The brokerage unit is responsible for 30 domestic offices including locations in Baton Rouge and Lafayette.

Those who are interested in finding out more about this case should contact either Stan Baudin or Chris Coffin of Pendley, Baudin & Coffin, L.L.P.  Pendley, Baudin & Coffin is a law firm which prosecutes consumer fraud and class action litigation