Courts & Crime

Risk-consulting firm Kroll faces civil lawsuit over Allen Stanford report

An electricians group claims it lost millions of dollars invested with Stanford International Bank because it trusted a report by the risk-consulting firm Kroll, which failed to include concerns about the bank's red flags, according to a civil lawsuit.

``Instead of conducting a reasonable investigation and reporting negative information about SIB, its affiliates or its managers, defendant Kroll submitted a falsely positive report,'' says the lawsuit filed by Electri International, the Foundation for Electric Construction.

Thomas Cash, former general manager of Kroll's intelligence division for Latin America and the Caribbean who signed the agreement with the plaintiff to evaluate the bank, left the consulting firm after the lawsuit was filed at federal court in Miami at the end of May.

Ray Howell, a Kroll spokesman, confirmed that Cash had left the firm, which had a big office in Miami, but added that it's the company's policy not to comment on personnel matters.

Regarding the lawsuit, Howell said Kroll's report warned of the risks of investing in the bank, which is based in Antigua.

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