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Victims of alleged Stanford scam file suit

Published:Wednesday | February 17, 2010 | 12:00 AM

SAN JUAN, Puerto Rico (AP):

Victims of the global fraud allegedly run by fallen financier R. Allen Stanford have filed a class-action lawsuit against the Eastern Caribbean Central Bank, five regional financial institutions and the government of Antigua and Barbuda.

Tuesday's filing falls on the one-year anniversary of the start of the US Securities and Exchange Commission's enforcement action against Stanford and top management of his former tropical empire in Antigua.

Attorney Peter D. Morgenstern says it was filed in US District Court in Dallas.

Stanford is accused of masterminding a US$7 billion Ponzi scheme and promising inflated returns to some 28,000 investors. Stanford, who became Antigua's largest private employer, denies the allegations.