I write to respectfully request that the Securities & Exchange Commission (SEC) file an appeal with the U.S. Court of Appeals, District of Columbia Circuit, seeking to overturn the July 3, 2012 ruling by U.S. District Court Judge Robert L. Wilkins in the matter of SEC v. Securities Investors Protection Corporation (SIPC), Civil Action No. 11-mc-678.
As you know, this case involves the matter of restitution for the victims of the former Stanford Financial Group under the Securities Investor Protection Act (SIPA) of 1972. In July of 2011, in its capacity as the regulator of SIPC, the SEC ordered a liquidation and payment under SIPA to certain affected customers of the former Stanford companies. SIPC however, refused to comply with the SEC’s order, which led to the court proceedings and ultimately, the decision rendered by Judge Wilkins denying SIPA coverage for the Stanford victims.
In the Sixth Congressional District of Louisiana and throughout the country, financial restitution under SIPA represents the last hope for many of Stanford’s victims to regain that which was taken from them more than three years ago. All I ask on behalf of these American citizens is for the SEC to honor the commitment they made back in July of 2011 by continuing to pursue all legal avenues which could result in the determination by the SEC that Stanford’s victims are entitled to SIPC coverage.
As the United States Representative for the area perhaps hardest hit by this tragedy, I have been confronted almost daily since my service began in 2009 with the heartbreaking stories and tragic outcomes that have befallen my constituents affected by Stanford. Enclosed with this letter is a message sent to me by one of those Louisiana citizens, Jean Ann Mayhall, who speaks both of the devastating impact of this ruling and offers a number of compelling arguments for the SEC to consider as you to decide whether to pursue an appeal. Ms. Mayhall’s words undoubtedly represent the hopes of thousands of Stanford victims who will quite literally see any chance for strongly consider those views during your deliberative process.
Once again, I ask you to continue to pursue the course of action that began when the SEC declared, rightfully, that many of the Stanford victims are entitled to coverage from SIPC by filing to appeal the ruling by Judge Wilkins. If I can provide any assistance or support to you or the SEC, please contact me at 202-225-3901. Thank you.
Member of Congress