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.
JPMorgan Chase is giving $1 million to Louisiana's community and technical colleges, to help with workforce training efforts to match students to available jobs.
Law firm unveils newly renovated 200-year-old building.
UL grad named web developer at BBR Creative
Lafayette-based emergency department staffing and management company raises $120 million in senior credit facilities through GE Capital, Healthcare Financial Services.
High-rise apartment building, parking garage, hotel and retail part of new development.
The number of Louisianans with jobs continued to set records in September, but the state's unemployment rate kept rising.
Louisiana is drowning, quickly.
An investment group led by Macquarie Infrastructure and Real Assets will buy the Louisiana power company Cleco for $3.4 billion.
Local developer’s Lake Charles Gardens LLC purchases buildings and leases; land still owned by Dugas family.
Economist Loren Scott says Louisiana is in the midst of an industrial boom unlike any other in its history, with more than $100 billion in industrial projects either under construction or in the engineering and design phase.
The Louisiana Treasury holds $18 million in Israel Bonds — bonds that earn 2.868 percent when the three-year U.S. Treasury is yielding 1.08 percent.
ABiz celebrates another class of Acadiana's most influential female trailblazers, the Lourdes Foundation honors a local philanthropist and MedExpress in Opelousas celebrates its 22nd year as the “little ambulance service that could.”
Is Louisiana’s O&G industry ready to head south of the border?
Downtown’s newest live-work space for creatives doubles as a gallery for other upcoming artists to show their work.
A maritime case originating in Lafayette federal court could become a game changer for the oil and gas industry.
Here’s what’s at stake in the November Senate race — regardless of whether Republicans gain control of the upper chamber.
From the publisher’s in-box: ABiz reaches out to Lake Charles, time to “Come Home, Louisiana,” and now accepting nominations for Entrepreneur of the Year.
In late September Cleco and UL Lafayette showed off the Cleco Alternative Energy Center, where researchers explore ways to generate power by using renewable resources.
The most recent promotions, hirings and announcements from Acadiana's biz community.
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Age 60 looks good on the country’s second-largest oil and gas show.
Local pieces and logo-emblazoned corporate gifts
Let’s show how much we care what it looks like.
The Memphis based investment firm Wunderlich recently arrived in Louisiana with the opening of a wealth management branch in Lafayette.
Broussard will soon be the site of a new Courtesy Automotive dealership.