Stanford brokers as frustrated as investors

February 26, 2009 3:33:37 PM PST
Investors with the Stanford Financial Group want to know if and when they can get their money. Some of them are in dire straits without the money they need to lead their daily lives. [SIGN UP: Get headlines and breaking news sent to you]

They may finally get some answers from the brokers who handled their finances.

A group of Stanford advisors and clients will meet Thursday night to talk for the very first time since the allegations came to light. It's a meeting that could put the brokers in legal trouble.

One broker told us one of his clients died this weekend. Unfortunately because much of the widow's funds were among the assets frozen, she wasn't sure she how to pay for her husband's cremation.

That advisor told us not being able to help clients in such dire need has been the hardest thing for them.

When the Stanford Financial Group's offices were raided on the Feb. 17, Stanford financial advisor Mark Groesbeck said all brokers were threatened with jail time if they spoke to their clients.

"We were told by U.S. Marshals or those that were with them that we were not to contact our clients," said Groesbeck.

So each advisor has not contacted their clients. It's a troubling restriction for those who have developed personal relationships with clients over years of handling their money.

"There's a group of advisors, myself included, that are very worried about the impact this has had on our clients," said Groesbeck.

So Groesbeck and at least twenty other advisors are filing papers in federal court to get a judge to remove a gag order against the advisors, if such an order even exists.

Our Eyewitness News legal analyst says any such restriction simply cannot legally exist.

"You can't prohibit communication. Orders wouldn't be constitutional if they inhibited speech or communication," said Joel Androphy.

If you are a Stanford investor and want to attend Thursday night's meeting, it is open to the public. The address is at the Houston Community College West Loop Center at 5601 West Loop South from 6pm to 8pm.

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