|by Richard Wolf, USA TODAY|
That's because the
The long-awaited decision in a case that was heard on the first day of the court's term in October was a victory for investors in
In a version of a Ponzi scheme later made more infamous by
Stanford was arrested in 2009 and convicted in 2012. He is serving a 110-year federal prison sentence in
The scheme not only defrauded customers; its reliance on investments that were not secured turned out to be key to its latest loss in court. Had the CDs been viewed as covered securities, they would have been included in the federal law, and state court actions would have been moot.
But after more than four months of deliberations, the justices ruled against financial institutions, law firms and insurance companies accused of aiding Stanford. They had argued that since the fraud included misrepresentations about covered security transactions, the federal law applied.
"Those words 'covered security' are important here," Justice
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