SIPC Moves To Wind Down NY Brokerage Accused Of Fraud

Law360, Chicago (May 23, 2013, 7:38 PM EDT) -- The Securities Investor Protection Corp. asked for court permission Thursday to liquidate Brooklyn, N.Y.-based brokerage firm TWS Financial LLC to protect its customers in the wake of fraud allegations against its owner and president.

The SIPC — which is funded by the brokerage industry to cover investors who lose money in failing firms — filed a complaint in New York federal court seeking a protective decree and to appoint itself as trustee to wind down the cratered brokerage. The SIPC typically appoints itself as trustee only...
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