Groups Sued Over Funds From Stanford

According to The Wall Street Journal, the receiver for R. Allen Stanford’s Ponzi scheme is suing Democratic and Republican political groups for return of funds. The proverbial clawbacks:

A spokesman for the Democratic Senatorial Campaign Committee, which the suit claims received $950,500, declined to comment.

A spokeswoman for the National Republican Congressional Committee, which allegedly received $238,500, declined to comment.

Here’s what I don’t get. Why is it necessary to sue these groups? Stanford’s name is toxic. I would think Democrats and Republicans alike would run from any association with him and return funds—quietly, under the radar, without spending taxpayer money through back-and-forth lawsuits.

What gives?

About the author

Norb Vonnegut wrote 178 articles on this blog.

Do you ever feel the financial news makes no sense? Do stories leave you with more questions than answers? I created Acrimoney to discuss Wall Street’s behavior behind the headlines. As a veteran of a wealth management business that exceeded $1 billion in assets, I offer insight into the people and the “doings” that affect your money. I’ll start the discussion. But I hope you’ll jump in and say what you think.

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