SIPC Sticks By Refusal To Repay Stanford Victims

Law360, New York (March 7, 2012, 3:01 PM EST) -- The head of the Securities Investor Protection Corp. on Wednesday defended the insurer's bold and controversial refusal to compensate victims of Robert Allen Stanford's alleged $7 billion Ponzi scheme, saying the law does not permit the repayment of "a bad investment."

In testimony before a House Financial Services subcommittee, Stephen P. Harbeck, CEO of SIPC, said those who invested with Stanford willingly and knowingly sent their money overseas to an unprotected bank in exchange for certificates of deposit. If they want their money, he said, they'll...
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