Chadbourne settles suit by investors burned by convicted Ponzi schemer
Chadbourne & Parke has settled a suit claiming a former partner aided fraud by convicted Ponzi schemer R. Allen Stanford.
Terms of the settlement with defrauded investors are undisclosed, the Am Law Daily (sub. req.) reports. Stanford’s former lawyer, Thomas Sjoblom, worked at Chadbourne before joining Proskauer Rose. Sjoblom and Proskauer remain as defendants in the litigation.
The suit claimed Sjoblom helped delay a Securities and Exchange Commission probe of Stanford’s conduct, enabling Stanford to continue his $7 billion Ponzi scheme. The U.S. Supreme Court ruled in 2014 that federal law designed to curb nuisance suits over federal securities did not bar the lawsuit.