SEC Argues For Broader Power Over SIPC Liquidation

Law360, Washington (October 16, 2013, 9:29 PM EDT) -- The U.S. Securities and Exchange Commission asked the D.C. Circuit on Tuesday to reverse a landmark lower court ruling preventing the agency from petitioning the Securities Investor Protection Corp. from compensation for Robert Allen Stanford’s $7 billion Ponzi scheme.

SEC attorney John W. Avery told a two-judge panel that U.S. District Judge Robert L. Wilkins failed to take into account that individual entities within Stanford’s scheme, namely SIPC member Stanford Group Co. and the non-member Stanford International Bank Ltd., operated under a singly fraudulent enterprise ignoring...
To view the full article, register now.