Investors sue SEC for failing to stop Stanford’s fraud

The eight plaintiffs, with a combined loss of nearly $18.7 million, say the agency’s negligence and misconduct caused their losses, and that they should’ve caught Stanford’s “massive” Ponzi scheme long before it collapsed. Last year, according to Bloomberg, the SEC’s inspector general faulted the agency and some specific employees for not taking action against Stanford sooner. They’d suspected Stanford was operating a Ponzi scheme for eight years before doing anything about it, the inspector general said.

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