FINRA Orders Pershing to Pay $5.6M to More Stanford Victims

All of them claimed Pershing was guilty of aiding and abetting common law fraud, aiding and abetting breach of fiduciary duty, negligence, breach of contract and violating multiple FINRA rules, according to FINRA. They all alleged that Pershing "aided and abetted criminal activities related to" the Ponzi scheme run by Stanford that involved certificates of deposit bought by the investors from Stanford International Bank, and Pershing's actions resulted in the claimants suffering losses.

The three separate actions against Pershing were later consolidated into one case that went to FINRA arbitration.

Scott D. Hirsch, owner of Scott Hirsch Law Group in Boca Raton, Florida, who represented the claimants, did not immediately respond to a request for comment. He previously represented several investors who claimed Pershing aided and abetted the Stanford Ponzi scheme. A three-person FINRA arbitration panel ordered Pershing to pay $1.4 million to those victims last year.

Allen Stanford allegedly defrauded investors out of more than $7.2 billion by selling them CDs. Contrary to Stanford's assurances about the safety and profitability of the investments, he allegedly stole billions of dollars of investor funds and "invested" other funds in speculative personal businesses.

In 2009, the Securities and Exchange Commission filed suit against Stanford, his companies and other defendants. He was sentenced to prison in 2012.