{"id":1029,"date":"2012-03-05T17:02:28","date_gmt":"2012-03-05T17:02:28","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2012\/03\/texas_securities_fraud_sipc_as"},"modified":"2022-04-20T13:39:12","modified_gmt":"2022-04-20T18:39:12","slug":"texas-securities-fraud-sipc-as","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/texas-securities-fraud-sipc-as\/","title":{"rendered":"Texas Financier Allen Stanford\u2019s Ponzi Scam: SIPC Asks District Court to Toss Out SEC Lawsuit Seeking to Reimburse Fraud Victims"},"content":{"rendered":"

The Securities Investor Protection Corp. is asking the U.S. District Court for the District of Columbia to reject the SEC’s request for an order that would make it pay back the victim of Texas financier R. Allen Stanford’s $7 Billion Ponzi scam. The brokerage industry-funded nonprofit claims that the Commission has not demonstrated that these investors are eligible to receive this type of coverage from SIPC.<\/p>\n

Standing by SIPC is the National Association of Independent Broker\/Dealers. The group wrote a letter to SEC Chairman Mary Schapiro contending that forcing the nonprofit to pay back Stanford’s victims is not only a “misfit solution,” but also, it will establish an “unsustainable precedent.”<\/p>\n

The SEC’s securities lawsuit<\/a> against SIPC is an attempt to force a brokerage’s liquidation, which is the first step that SIPC must take under the Securities Investor Protection Act to pay back the clients of its member firms. SIPC, however, has refused to do so on the grounds that Stanford International Bank, which is based in Antigua, is not one if its member firms. Stanford International Bank is the financial firm that issued the more than $7.2 billion CDs that were sold to investors. (It is Stanford Group Co. that belongs to SIPC.) The CDs now have no value.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Securities Investor Protection Corp. is asking the U.S. District Court for the District of Columbia to reject the SEC’s request for an order that would make it pay back the victim of Texas financier R. Allen Stanford’s $7 Billion Ponzi scam. The brokerage industry-funded nonprofit claims that the Commission has not demonstrated that these […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3792,3888,3750],"tags":[2535],"class_list":["post-1029","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-ponzi-scams","category-stanford-group-co","category-texas-securities-fraud","tag-stanford-ponzi-scam"],"yoast_head":"\nTexas Financier Allen Stanford\u2019s Ponzi Scam: SIPC Asks District Court to Toss Out SEC Lawsuit Seeking to Reimburse Fraud Victims — Investor Lawyers Blog — March 5, 2012<\/title>\n<meta name=\"description\" content=\"The Securities Investor Protection Corp. is asking the U.S. District Court for the District of Columbia to reject the SEC's request for an order that — March 5, 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