SEC Can't Make SIPC Repay Stanford Victims, Judge Says

Law360, New York (July 3, 2012, 5:40 PM EDT) -- 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...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.