On Tuesday, the Supreme Court of the United States denied a petition for certiorari that was filed by a group of former Ponzi scheme financial advisers. In Janvey v. Alguire, et al., No. 17-230, the former Stanford Group employees filed an unsuccessful motion to compel arbitration with a Receiver who was appointed by the Northern District of Texas to unwind the Ponzi scheme. On appeal, a Fifth Circuit panel affirmed the lower court’s order denying the financial advisers’ request. The former employees then sought review by the nation’s high court.
In their petition for certiorari, the former financial advisers argued the Fifth Circuit’s holding created a circuit split with the Sixth, Tenth, and Eleventh Circuits that should be resolved by the Supreme Court. In addition, the former Ponzi scheme employees also claimed their request for arbitration with the Receiver should have been granted based on their written employment contracts with the Stanford Group and the Financial Industry Regulatory Authority’s arbitration rules. The high court ultimately denied the former financial advisers’ petition without comment.
More information regarding this case is available in an earlier Disputing blog post.