SEC Appeals Ruling That SIPC Needn't Cover Stanford Victims

Law360, New York (August 31, 2012, 7:36 PM EDT) -- The U.S. Securities and Exchange Commission will challenge a Washington federal judge's ruling that Securities Investor Protection Corp. doesn't have to help cover victims' losses from convicted Robert Allen Stanford's $7 billion Ponzi scheme, the regulator said Friday.

In a notice of appeal filed in Washington federal court, the SEC said that it would contest the July 3 decision by U.S. District Judge Robert L. Wilkins, who sided with the brokerage industry group's argument that the Securities Investment Protection Act requires it to cover only SIPC...
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