Insurance Companies Must Fund Former Stanford Executives’ Defense Until Court Rules
A 5th Circuit panel has held that a court -- not insurance companies -- will determine whether two insurance companies must pay defense costs for R. Allen Stanford and three other former Stanford Financial Group executives who face criminal charges and civil litigation. The civil litigation filed by the SEC and the federal criminal charges stem from allegations that the former SFG executives conspired to defraud investors who bought about $7 million in certificates of deposit sold through Stanford International Bank.
