Securities Law

Thousands Who Lost Money on CDs from Stanford's Offshore Bank Are Likely to Be Repaid by SIPC


Investors who purchased worthless certificates of deposit from a brokerage unit of alleged Ponzi schemer R. Allen Stanford’s offshore bank are likely to have at least some of their losses covered by the Securities Investor Protection Corp.

Although the SIPC earlier denied such claims, contending that the CDs are still in investors’ possession, albeit valueless, it is likely to reverse course after a ruling today from the U.S. Securities and Exchange Commission that the industry group should have covered the claims, Dow Jones Newswires explains.

Onetime billionaire Stanford, who has had a convoluted history of legal representation and at last report was unable to assist in his own defense because of medication and injuries, is jailed in Texas awaiting trial in a related criminal case. He is accused of orchestrating a $7 billion scheme that allegedly defrauded thousands who thought they were buying a safe investment.

Previous:
NC Appeals Court Stays Order Taking Primary Custody of Children Away from Mom with Breast Cancer

Next:
Detroit Seeks $10M from Ex-Partner of Venable, Says She Didn't Do Job Due to Relationship with Mayor


We welcome your comments, but please adhere to our comment policy. Flag comment for moderator.

Commenting is not available in this channel entry.