Samuel Troice et al v. Willis Group Holdings, LTD et al
(Northern District of Texas, July 2, 2009)
Just days after it was announced that fallen Stanford Financial Group’s disgraced CFO, James Davis, would plead guilty to his role in Stanford’s alleged $7 billion ponzi scheme, a group of Mexican investors filed a class against complaint against Stanford’s insurance brokers, including Willis Group Holdings, Ltd., alleging the brokers effectively became partners in the ponzi scheme by issuing letters certifying that Stanford was “safe and sound,” and making representations regarding the existence of insurance coverage for the investments, including undergoing annual “stringent” risk management reviews. The letters were used by Stanford in marketing their allegedly fraudulent investments.
The plaintiffs claim Willis “crossed the line from being mere insurance brokers…to joining the [Stanford] sales force” by issuing the letters It is alleged that the brokers knew or should have known that the statements were false. The causes of actions against the brokers allege that the brokers actually sold the securities through untruths and omissions, aided and abetted Stanford in its ponzi scheme, that the brokers participated in a fraudulent scheme by, and were engaged in a conspiracy.
For a copy of the complaint click here
By Sarah J. Delaney