Posted Mar 07, 2012 12:14 am CST
A prosecution verdict today in the criminal fraud case against onetime billionaire R. Allen Stanford could be bad news for an attorney and two law firms facing civil cases related to his crimes.
Attorney Thomas Sjoblom, who formerly worked for both Chadbourne & Parke and Proskauer Rose after leaving the enforcement division of the U.S. Securities and Exchange Commission, is accused in the civil litigation of helping Stanford cover up his crimes. The law firms are accused of negligently hiring and supervising Sjoblom, according to Reuters.
While Stanford’s conviction today doesn’t mean that the plaintiffs will necessarily win the litigation against Sjoblom and the law firms, it could help them obtain more evidence to prove their case, experts say.
“We now know there were bad actors and people suffered. The only question left is who should pay for it,” attorney Michael Downey of Armstrong Teasdale, who isn’t involved in the Stanford matter, told the news agency. “The issue will be ‘should we make these poor innocent investors bear the losses or the lawyers who helped make it all happen?’ “
ABAJournal.com (2009): “Stanford Investors Sue 2nd Law Firm, Ex-GC; Proskauer Partner Withdraws”
ABAJournal.com: “Stanford Investors Sue Proskauer, Chadbourne and Ex-Partner Sjoblom in Texas State Court”
ABAJournal.com: “Onetime Billionaire R. Allen Stanford Convicted on 13 of 14 Counts in $7B Federal Fraud Trial”
Reuters: “Insight: How Allen Stanford kept the SEC at bay”