Justice Dept. Settles Case Against Ex-Stanford Attorney

Spencer Barasch (Image Courtesy of Bloomberg News)
A former Securities and Exchange Commission attorney has agreed to pay $50,000 to settle charges that he violated federal conflict of interest standards by providing representation for disgraced Houston financier R. Allen Stanford.

The agreement between Dallas attorney Spencer Barasch and the Department of Justice settles allegations that Barasch improperly represented Stanford in front of the SEC after leaving his post as head of enforcement in the agency's Fort Worth office.

The government claims Barasch, while with the SEC, directed an inquiry of Stanford be closed.

Barasch's attorney, Paul Coggins, said his client denies wrongdoing but settled to avoid "protracted litigation."

Stanford was charged in 2009 with running a Ponzi scheme that bilked investors out of $7 billion. His trial is scheduled to begin January 23.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...