WASHINGTON — U.S. Sen. Roger Wicker (R-Miss.) has sent a letter to Securities and Exchange Commission (SEC) chairman Mary Schapiro outlining Wicker’s concerns with the SEC’s review of the Stanford ponzi scheme.
Wicker was joined by 52 other Senate and House members.
“Many of the victims of Allen Stanford’s fraud lost most if not all of their life’s savings,” said Wicker. “These people depended on the SEC for oversight, and clearly the system of protections did not work to prevent the Stanford scheme. The SEC should not delay its review of the Stanford case.”
Currently, the SEC is determining whether Stanford victims qualify for Securities Investor Protection Corporation (SIPC) coverage. SIPC was created by Congress in 1970 to recoup losses, within certain limits, from bankrupt or financially-troubled brokerages. To date, Stanford Financial Group victims have not been found to be qualified for SIPC relief. However, the Stanford Victims Coalition has been conferring with the SEC to try to make a case for SIPC eligibility.
Source: Sen. Roger Wicker’s Office