The infamous ponzi scheme carried out by Allen Standford, who was a Texas financier, has taken a new, interesting turn for the investors that were victimized by the fraud, due to a Supreme Court decision that was passed today.
According to a report from USA Today, investors who lost billion of dollars in the ponzi scheme will be able to sue in state court.
The scheme that took place over a 15 years span, impacted over 25,000 people and cost them all well over $7 billion, was given a favorable ruling for investors by the Supreme Court.
They determined that because the rule that would've granted federal jurisdiction points to real, not fake, investments. This in turn now allows investors impacted by the ponzi scheme to take action and sue via in state court.
Before being arrested in 2009, Stanford and the rest of his associates forged certain financial documents, in addition to lying to regulators about various financial standings they currently were involved in. This in turn resulted in tens of thousands of investors losing everything, including their life savings.
Justice Stephen Breyer, who wrote the opinion, said, "Those words 'covered security' are important here. Defrauded investors will be able to obtain damages under state law."
One of the Justices who dissented from Breyer's opinion commented on the fact that this decision could end up limiting the authority the SEC (Security & Exchanges Committee) has to prosecute in other fraud situations similar to this one.
Allen Standford is currently serving a 110-year prison sentence.