The INDsider -> Leslie Turk FRI, SEP 4 10:32AM by Leslie Turk

Stanford victims shafted by SIPC

The Securities Investor Protection Corp. has been paying victims of Bernie Madoff’s Ponzi scheme but claims it’s not responsible for any coverage of Stanford victims’ losses, Bloomberg reported today. Stanford Group Co., which sold the so-called CDs at the heart of what numerous federal officials now believe was also an $8 billion Ponzi scheme, was insured by the SIPC (the logo appeared on business cards and stationery, a source of comfort to investors).

So why pay Madoff’s victims and not R. Allen Stanford’s?

Under U.S. law, SIPC repays up to $500,000 in custodial losses to investors whose securities are missing from accounts at member firms, SIPC President Stephen Harbeck told Bloomberg. The protection doesn’t extend to investors who’ve got their certificates, even if the securities have been rendered worthless by fraudulent conduct, he said.

Say what? SIPC covers fraud, but not this kind of fraud?

Read the rest of the story here.



Comments (4)add
...
written by Klerg , September 06, 2009 - 12:25 pm
Sadly, yes. SIPC covers fraud, but not this kind of fraud.
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written by Eliot Bernstein , September 07, 2009 - 06:31 am
From an Iviewit Press Release

IVIEWIT TRILLION $$ FED SUIT DEFENDANT PROSKAUER ROSE SUED IN GLOBAL CLASS ACTION RE STANFORD PONZI

Proskauer Rose Sued in Stanford Ponzi – Blood Oaths with Regulators – Iviewit Suit “LEGALLY” related to NY Supreme Court Whistleblower Christine Anderson Heading to Trial with Judge Shira Scheindlin
Full Press release @

http://www.free-press-release.com/news-iviewit-trillion-fed-suit-defendant-proskauer-rose-sued-in-global-class-action-re-stanford-ponzi-1252249099.html

Eliot I. Bernstein
Inventor
Iviewit Holdings, Inc. – DL
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
www.iviewit.tv
http://iviewit.tv/wordpress/
http://iviewit.tv/wordpresseliot/
More @

http://exposecorruptcourts.blogspot.com/2007/12/ethics-scandal-hearing-greeted-with-15.html

http://exposecorruptcourts.blogspot.com

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written by Dr. Know , September 09, 2009 - 04:41 pm
I guess you missed the part that said "whose securities are missing from accounts at member firms" Key word is MEMBER FIRM. So, do business with firms who are a member of SIPC
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written by so confused , September 09, 2009 - 11:01 pm
Dr. don't Know,
Funny how all of my Stanford Statements have printed front and back under the Stanford Logo, SIPC INSURED,which my broker confirmed 3 seperate times. Please be informed before commenting and do not judge what you do not know.
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