Most Recent
AdSurfDaily Agape agent American Integrity Aronson asset sales Attorney av bar reg baker bank bank of america Bankruptcy baumann bermudez black diamond blackwell bridge loan bull cattle CD celebrity cftc charity china China Voice church cityfund claims claims process clawback commission commodities commodity pool computer program congress Crown Forex currency death sentence denver diamond bar disgorgement Distribution Dodd-Frank donnan Dreier dunhill e-bullion elderly E-M Management SEC england Fairfield family FBI FDIC Fees female ponzi scheme financial advisor fine FINRA football forex fraud fufta fugitive Full Tilt gift card guilty plea GunnAllen hawaii Heckscher HSBC india invers forex janvey John Morgan JP Morgan kansas ken bell kenzie las vegas lawsuit lawyer libya Lifland machado Madoff Marian Morgan metro dream homes mets milberg millers a game Morgan European Holdings mortgage multiple schemes NCAA Net Winner new jersey notes objection Oxford Patrick Kiley paul burks PermaPave Pettengill Petters Picard poker Ponzi ponzi scheme ponzi scheme database ponzi scheme list Prime Rate profitable sunrise prosun pta puerto rico Rakoff real estate receiver receivership regulation relief defendants religion remission repeat offender restitution Rothstein RRA sec sentencing simmons sipa sipc snelling standing stanford stettin subpoena td bank telexfree treasury bonds treasury strip Tremont Trevor Cook UBS UFTA uga utah venture advisors Wachovia wilpon wire fraud woman zeek zeek rewards zeekler zeekrewards
Recent SEC Releases
« Elementary School PTA Moms Accused of $3M Ponzi Scheme | Main | 2 Indicted for Operating Ponzi Scheme in Kentucky »

Stanford Investors Must Wait Until September for SIPC's Decision

As covered by Ponzitracker in an earlier post, the Securities and Exchange Commission recently recommended that investors defrauded by R. Allen Stanford's multi-billion dollar Ponzi scheme were entitled to receive compensation from the Securities Investor Protection Corporation ("SIPC").  SIPC was established to compensate investors of failed broker-dealers, and is funded entirely by its member organizations.  Investors who fall under the protection of SIPC are entitled to compensation for up to $500,000 of brokerage losses.  

While SIPC had originally issued its opinion that Stanford's investors were not entitled to SIPC's protections, this opinion was made informally.  The SEC issued its recommendation on June 15, threatening to take legal action against SIPC if its recommendation is not heeded.  In response, SIPC recently announced that it was reviewing the SEC's decision, and would announce its decision on or around September 15th.  

SIPC has recently come under fire for its handling of several cases, including claims it was slow to pay out to Madoff victims and the decision to exclude Stanford investors. Often analogized to the Federal Deposit Insurance Corp. ("FDIC"), which covers deposit holders at failed banking institutions, SIPC was created in 1970 to provide similar protection to clients of failed broker-dealers.  In addition, criticism has increased that the $500,000 limit for payout to customers of failed brokerages, in place since the organization was established in 1970, should be increased.  However, such an increase can only be achieved through Congressional amendment of SIPC's enacting legislation.

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>