In the decade since R. Allen Stanford’s international financial empire was exposed as a fiction, investors in his Ponzi scheme have recouped just a tiny fraction of the life savings many of them lost. Now a small group of individuals, backed by hedge funds, is making a last-ditch effort to recover money from five banks that they contend turned a blind eye to Mr. Stanford’s fraud. In a lawsuit filed in Dallas federal court on Friday, these investors alleged that the banks “aided, abetted and conspired” with Mr. Stanford to...

Source: Wall Street Journal May 04, 2019 12:00 UTC