Plaintiffs v Proskauer Rose and partner Thomas V. Sjoblom
Proskauer Targeted in Class Action Over Handling of Stanford Financial
A group of investor clients of Stanford Financial Group has filed a class action against Proskauer Rose and partner Thomas V. Sjoblom.
The lawsuit, filed in the U.S. District Court for the Northern District of Texas in Dallas, alleges that the law firm and Sjoblom participated in a massive investment fraud scheme that led to the intervention by the U.S. Securities and Exchange Commission and the appointment of a receiver for the investment firm.
The class action, Troice v. Proskauer Rose, claims that the law firm and Sjoblom aided and abetted Stanford Financial's alleged fraud and that it conspired with Stanford Financial. It claims that under Texas law Proskauer Rose is liable for the $7 billion in total fraud losses. The filing of the class action follows a guilty plea by former Stanford Chief Financial Officer James Davis. In it, Davis appeared to implicate Stanford's outside attorney, Sjoblom, in a conspiracy to thwart an investigation by the SEC into Stanford's alleged fraud.
Sjoblom was assistant chief litigation counsel in the SEC's enforcement division prior to entering private practice.
Proskauer Rose issued a statement that said the lawsuit was "legally flawed and factually erroneous."
In February, the SEC charged Stanford Financial Group, led by Allen Stanford, with orchestrating a "massive ongoing fraud" that included selling some $8 billion in high-yield certificates of deposit.
Representing the plaintiffs are Edward C. Snyder and Jesse R. Castillo of Castillo Snyder in San Antonio.
For more information please contact:
Castillo Snyder
Bank Of America Plaza
300 Convent, Suite 1020
San Antonio, Texas 78205-3789
Tel: (210) 630-4200
Fax: (210) 630-4210
