The U.S. 5th Circuit Court of Appeals Affirms Stanford Ponzi Victims' Financial Industry Regulatory Authority Loss (U.S. 5th Circuit Court of Appeals Pershing, L.L.C. v. Thomas Kiebach et al (17-30520)), Opinion by ARNOLD F. SOCK, Attorney at Law
The Fifth Circuit on Friday affirmed a lower court’s ruling confirming that a Financial Industry Regulatory Authority arbitral panel’s award that cleared financial services provider Pershing LLC of liability for $80 million in damages sustained by victims of R. Allen Stanford’s Ponzi scheme.(U.S. 5th Circuit Court of Appeals Pershing, L.L.C. v. Thomas Kiebach et al (17-30520)),
The appellate panel said in a brisk, five-sentence opinion that U.S. District Judge Lance M. Africk was right to uphold the Financial Industry Regulatory Authority panel’s decision that Pershing, the clearing broker for one of Stanford’s business entities, was not on the line for losses. This shows that an unwitting participant in a scheme is not liable for the the injury commited by others when they had no knowledge of what was being perpetrated..Opinion by ARNOLD F. SOCK, Attorney at Law.