Investment Management

Federal Court Sides with SIPC in Dispute with SEC, Rejecting SEC’s Bid To Force SIPC To Cover Losses of Stanford Ponzi Scheme Victims

Contact: Herrick, Feinstein LLP (New York, New York, USA)

In a closely watched case brought by the Securities and Exchange Commission (“SEC”) against the Securities Investor Protection Corporation (“SIPC”) in the United States District Court for the District of Columbia—the first of its kind in the 42-year history of SIPC—the District Court, in a decision issued on July 3, 2012, sided with SIPC, declining to issue an order forcing SIPC to provide coverage for the victims of the multi-billion dollar Stanford Ponzi scheme. All eyes are now on the SEC as it decides whether or not to appeal the District Court’s decision.

Background

This case was an outgrowth of the multi-billion dollar Ponzi scheme orchestrated by Robert Allen Stanford (“Stanford”), which involved the selling of over $7 billion worth... : : Click Here to Read More

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