In a May 6 letter just obtained by The INDsider, the group urges Shapiro to immediately initiate a liquidation of Stanford Group Co. under the Securities Investor Protection Act (SIPA) and order the SIPC to pay claims to customers of SGC, which was an SEC-registered broker dealer and SIPC member. In supporting its position, the group reminds Shapiro of the recent SEC inspector general's report that uncovered the SEC's abysmal failure in stopping Stanford, despite knowing since 1997 that the company was likely running a Ponzi scheme.
Created by Congress in 1970, SIPC is funded by member brokers and dealers across the country. It offered more than $500 million in coverage to fraud victims of Bernard Madoff but has repeatedly denied coverage to Stanford victims in 46 states because most of Stanford’s investors lost money earmarked for Antigua-based Stanford International Bank. In reality, however, many of the funds were never even sent to the offshore bank, but were diverted to Allen Stanford himself or back to SGC.
The group of congressmen, which includes Sens. Mary Landrieu and David Vitter, and Reps. Charlie Melancon, Bill Cassidy, Rodney Alexander and Anh "Joseph" Cao, contends that SIPC was created to protect customers whose funds are stolen by a registered broker dealer. And in the Stanford matter, they maintain, customers' funds were indeed stolen by the owner of registered broker dealer.
The Stanford Victims Coalition has been the driving force behind securing this bi-partisan push. "It has been like moving a mountain," says one local Stanford investor who asked not to be identified. "It has been done without teams of lawyers. It has been done largely by a few dedicated people who have spent every day working on this since it has happened, and I think all the victims can finally say someone is listening."
Read the letter to Shapiro here.
Mellow Mushroom Pizza Bakers opens on Johnston.
Acadiana's Top 50 Private Companies
It would be an understatement to say Schumacher Group had a challenging year in 2013.
Hampton Toyota has been serving Acadiana as the premier Toyota dealership for more than 10 years. And now, the glossy Johnston Street dealership is looking forward to a makeover.
Even when Floyd Degueyter is on “vacation” he’s hard at work.
As the second largest metal heat treating company in the country, Analytic Stress Relieving Inc. has grown by leaps and bounds since its inception in 1979.
When the Prohibition era came to an end in 1933, Joseph R. Streva saw an opportunity to make a little extra money to supplement his day job.
When a hurricane hits, Brent Mouton doesn’t run. The convenience store chain owner is proof that the challenges of mother nature can almost break a business, but Mouton learned to grow out of temporary closure from near devastation in 2002 and of lost potential revenue.
By launching a Super PAC to end all Super PACs, our Top 50 keynote speaker hopes to change the game in Washington.
Oil Center-based private facility extends its offerings with special events venue in failed women’s store.
One year later, is his expansion plan paying off?
Newspaper industry insiders question John Georges’ expansion plan.
How the U.S. has gotten itself into another fine mess
The Heymann Center was transformed into a culinary adventure in mid-June for the EatLafayette kick-off event, A Taste of Lafayette, and for the third consecutive year, a sellout crowd filled the Cajundome Convention Center June 19 to hear LEDA chief Gregg Gothreaux’s State of the Economy report.
A look at recent hirings, promotions and other announcements from Acadiana's business community.
Anne Pyle puts a bow on a stellar, expectations-defying career with her latest venture.
The company currently has 10 branches throughout Louisiana, including an Ambassador Caffery location which opened last year.
Lawmakers have added $15 million to the attorney general's budget to pay for Louisiana's ongoing legal case against BP for damages caused by the 2010 Gulf oil spill.
The state's jobless rate rose to 5 percent in June from 4.9 percent in May. Louisiana's unemployment rate was 6.4 percent in June 2013.
Long-established private club opening special events venue in failed women’s store at Kaliste Saloom Road and Camellia Boulevard.
High-dollar legal teams are preparing to spar in federal court over the regional levee authority’s historic lawsuit against oil and gas companies, but a panel of volunteers could preempt those efforts when they meet in August.
May sales, the highest on record for the month at $534 million, increased 6.1 percent over May 2013.
Trendy Shi Shi is heading to the Ranch, longtime retail institution Partners’ Ltd. is relocating to Parc Lafayette, and ariel artist haven Vertical Barre is moving downtown.
There’s another debit/credit card scam making the rounds — the second this year — this time via a robo call purportedly from MidSouth Bank.
The 2014 Louisiana Annual Sales Tax Holiday exempts the first $2,500 of the purchase price of each eligible item for non-business use when the customer buys and accepts delivery of eligible property or places property on layaway.