Action charges on violations of Texas securities law by Willis, and the co-defendants in the investment fraud scheme perpetrated by Stanford

Strasburger & Price (Strasburger) and Castillo Snyder have filed a class action law suit in US Federal Court against Willis Group Holdings (Willis), a UK-based insurance broker, and other defendants.

The suit, filed on behalf of a class of defrauded Mexican depositor clients of Houston-based Stanford Financial Group (Stanford), also names Willis of Colorado, Bowen, Miclette & Britt of Houston, and two individuals.

According to Strasburger, action charges on violations of Texas securities law by Willis and the co-defendants in the investment fraud scheme, perpetrated by Stanford. This led to the intervention by the Securities and Exchange Commission (SEC) in Texas. Strasburger Partners, Edward Valdespino and David Cibrian, will serve as lead lawyers for the Strasburger team for the plaintiffs.

The 56-page filing alleges that Willis, and the co-defendants, provided Stanford with certain ‘safe and soundness’ letters at Stanford’s request. The suit also alleges the defendants’ direct participation in the fraud crossed the line from the role of insurance brokers, to acting as sales agents for Stanford and its deposit products.