Statement from Kachroo Legal Services

KLS --- KACHROO LEGAL SERVICES, P.C.

January 11, 2011

Dear Stanford Investors and Attorneys:

It has come to our attention that certain misleading rumors may be circulating concerning the sharing of commissions and referral fees with non-attorneys relating to the filings of SEC administrative claims in the Stanford matter. Please note the following information carefully:

The Model Rules of Professional Conduct Rule 5.4 generally prohibit a lawyer or law firm from sharing fees with any non-lawyer. [See also, Mass. Code of Prof. Resp. 7.2(c), New York Lawyer’s Code of Prof. Resp. Rules DR-2-103(D) and DR-10107 and the Texas Disciplinary Code of Prof. Resp. 7.03(b).] Among other reasons, the American Bar Association has said that the rule is important to prevent problems of professional independence that can arise when non-lawyers assume a position in which they can interfere in a lawyer’s practice. (ABA Formal Ethics Op. 95-392.)

Additionally, any person circulating such rumors may be liable for defamation in making such statements to a third person. Anyone who suggests that Kachroo Legal Services, P.C. is paying a fee to a non-lawyer in the Stanford case would by falsely implying that the law firm is violating the rules of professional conduct. Kachroo Legal Services, P.C. has never and would never engage in such a practice. This is an issue of public concern and damages our reputation. Kachroo Legal Services, P.C. requests that anyone who has made such statements halt immediately and apologize publicly.

- Dr. Gaytri D. Kachroo, Kachroo Legal Services, P.C.