Law360, New York (July 03, 2012, 5:40 PM ET) -- The U.S. Securities and Exchange Commission cannot force the Securities Investor Protection Corp. to compensate victims of convicted tycoon Robert Allen Stanford's $7 billion Ponzi scheme, a Washington federal judge said Tuesday in a first-of-its-kind decision.
U.S. District Judge Robert L. Wilkins threw out the SEC’s Dec. 12 application to compel SIPC to pay the fraud victims’ claims through a liquidation proceeding. The corporation, funded by the brokerage industry to cover investors who lose money in failing firms, successfully argued that the Securities Investment Protection Act...
SEC Can't Make SIPC Repay Stanford Victims, Judge Says
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