Willis faces new suit linked to Stanford fraud case

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Insurance brokerage Willis Group Holdings now faces a second federal lawsuit, linked to a $7 billion Ponzi scheme allegedly perpetrated by Allen Stanford and Stanford Financial Group.

scalesbalanceIn the latest suit, filed July 17 in U.S. federal court in Miami, Reinaldo Ranni, a Venezuelen investor, accuses Willis of fraud, negligence, misrepresentation and violations of U.S. and Florida securities law, according to Reuters.

Earlier this month, a similar suit was filed by a group of former Stanford depositors from Mexico against Willis and codefendants Bowen, Miclette & Britt of Houston, Texas, and two other individuals. That suit accuses the defendants of supplying Stanford Financial with “safety and soundness” letters, used to retain or obtain actual or prospective clients.

Ranni’s suit makes similar claims, alleging that Willis “played an instrumental role in enabling Allen Stanford and his companies to perpetrate a massive multi-billion dollar fraud against scores of investors, largely Venezuelans and other South Americans,” Reuters said, citing the lawsuit. The investors said they relied on phony assurances, through the “safety and soundness letters,” that their CDs were insured and that Stanford’s bank could be trusted.

In February, the U.S. Securities and Exchange Commission sued Houston-based Stanford Financial for civil fraud and prosecutors brought criminal charges against Stanford in others alleging the multi-billion dollar scheme promising investors higher-than-normal returns on certificates of deposit.

A Willis Group spokesman declined comment to Reuters on the latest lawsuit.

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