A Financial Industry Regulatory Authority arbitration panel has ordered Pershing to pay close to $650,000 to another group of investors who claimed loses that were part of a $7 billion Ponzi scheme involving certificates of deposit from Antigua’s Stanford International Bank.

The most recent award applies to several claims filed by dozens of investors that were eventually consolidated into one, accusing Pershing of participation in common law fraud, participation in the breach of fiduciary duty by Stanford Group, whose financial advisors recommended the CDs from Stanford International Bank, and giving material assistance to a Ponzi scheme, among other infractions. The claimants sought millions of dollars in compensatory damages.

But last week, the Finra arbitrators awarded far less money than was being sought in the consolidated claims — and only to investors.

The panel ordered Pershing to pay $436,000 in compensatory damages to Charles Pope, around $124,600 to Dudley Devore IRA and $87,200 to Joyce Cagle, according to a Finra award document published on Thursday. The arbitrators also ordered Pershing to pay $750 in costs and reimbursements as the non-refundable portion of the Finra dispute resolution filing fee, but denied all other claims for damages and costs, the industry’s self-regulator says.

In February 2020, a Finra arbitration panel ordered Pershing to pay a total of around $5.6 million in compensatory and punitive or exemplary damages over claims connected to the Stanford Ponzi scheme, as reported.

Allen Stanford is serving a 110-year prison sentence after a federal jury found him guilty in June 2012 of running a 20-year fraud scheme that resulted in the misappropriation of $7 billion from Stanford International Bank to pay for his personal businesses. Five other defendants in the case have received sentences ranging from three to 20 years in prison.

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