Insurance Company Allegedly Steered Investors to Allen Stanford

By Evan Mix

Published on July 23, 2009

Willis Group Holdings, a global insurance broker, was sued in federal court in Miami last week for routing thousands of potential investors from around the world to billionaire financier Allen Stanford. Stanford faces criminal charges in connection with an alleged Ponzi scheme designed to defraud investors of their money.

According to the suit, filed by Venezuelan investor Reinaldo Ranni, the insurance broker sent letters to investors touting the "safety and soundness" of Stanford investments. Stanford also used the letters to woo potential investors, including Ranni, who invested over $2.7 million after he was shown such a letter at Stanford's office in Miami. He subsequently lost the money when the Ponzi scheme collapsed.

Stanford and several of his associates are accused of defrauding investors of more than $7 billion over a period of several years. He has promised to fight the charges. Willis Group declined to comment on the new lawsuit, which seeks class-action status according to federal law.

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