What You Need to Know
- This is the latest group of investors to allege they lost money in the Ponzi scheme run by financier R. Allen Stanford.
- The claimants alleged Pershing was liable because it acted as custodian and clearing firm for Stanford and gave material assistance to the scheme.
- The three-person FINRA arb panel agreed but awarded less money in damages than requested to fewer claimants.
A Financial Industry Regulatory Authority arbitration panel has ordered Pershing to pay a total of $648,543 to another group of investors who alleged they lost money in the Ponzi scheme run by financier R. Allen Stanford, who is serving a 110-year prison sentence.
Pershing did not immediately respond to a request for comment Friday, one day after the three-person FINRA arbitration panel made its decision and posted the award on the regulator’s website.
In February 2020, a FINRA arb panel ordered Pershing to pay $5.6 million in damages to a group of 23…