Monthly Archives: December 2011
KLS complaint against the U.S. Government/SEC
By Dr. Gaytri D. Kachroo Ft. Lauderdale, FLA – A class action lawsuit was filed against the United States on December 13, 2011, for the billions in losses suffered by investors in the Allen Stanford international Ponzi scheme. The case, filed in the United States District Court for the Southern District of Florida seeks to hold the […]
Madoff’s case bigger, but Stanford’s messier
By Loren Steffy From the beginning, the collapse of R. Allen Stanford’s financial empire was unlike other financial scandals, and the aftermath of his alleged $7 billion fraud has been messier than normal for investors in such cases. Bernard Madoff, after all, orchestrated a Ponzi scheme almost 10 times bigger than the one Stanford is […]
SEC sues insurance fund in Stanford case
By Loren Steffy The Securities and Exchange Commission, in an unprecedented move, sued a national brokerage insurance fund to force it to cover potential investor losses from R. Allen Stanford’s alleged $7.2 billion Ponzi scheme. The lawsuit, filed in federal court in Washington, would require the Securities Investor Protection Corp., or SIPC, to begin a […]
Stanford’s donations still stain lawmakers’ hands
By Loren Steffy In the battle over insurance coverage for investors who lost money in the collapse of Stanford Financial’s U.S. brokerage, it’s difficult to know who’s on investors’ side. Recently, 27 lawmakers sent a letter to the Securities Investor Protection Corp., which is funded by the brokerage industry and overseen by the government, demanding […]
SIPC Rebuffs Stanford Investors Demands to Cover Losses
By Scott Cohn The agency that insures U.S. brokerage accounts has again rebuffed demands it provide coverage to investors in Allen Stanford’s alleged $7 billion Ponzi scheme, making it increasingly likely the issue is headed to court. In a December 2 letter to members of Congress, obtained by CNBC, the head of the Securities Investor […]
Is SIPC afraid of lawsuits in the Stanford case?
By Loren Steffy For years, almost 8,000 investors who lost money in the collapse of Stanford Financial’s U.S. brokerage have been waiting for a decision on whether their losses will be covered by the Securities Investor Protection Corp. Back in June, the Securities and Exchange Commission said that they should. SIPC itself has yet to […]
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