The Securities and Exchange Commission Wednesday concluded that Stanford victims, like those of Bernie Madoff, should be compensated by the Securities Investor Protection Corp., which handles claims for investors if their brokerage firm fails. The long-awaited decision came after a two-year battle that started with an SIPC opinion that Stanford victims were not eligible to file claims. It also came a day afer U.S. Sen. David Vitter put a hold on two SEC member nominations.
In its decision, the SEC said people who bought so-called certificates of deposit through the Stanford Group Co., Stanford’s U.S. brokerage arm, are entitled to protection by SIPC. The SEC said it would formally ask SIPC to institute a liquidation proceeding that would allow claims to be filed.
Allen Stanford is awaiting trial on charges he defrauded $7 billion from investors, about $1 billion of which came from investors in South Louisiana (there are 1,800 Stanford victims in the state), including a significant number from the Lafayette area.
Though its Wednesday recommendation is a major victory for Stanford’s victims, the SEC’s Stanford problems are far from over, as local investors have sued the regulatory agency, alleging negligence and misconduct.
In announcing his intentions to block the SEC nominations Tuesday, Vitter said: “Unfortunately, the SEC has not yet given the Stanford victims an answer despite my repeated conversations with Chairwoman Mary Schapiro. Many of these folks in Louisiana and along the Gulf region lost their life savings, and they at least deserve a direct answer on their request for coverage. After months of delay the commission has now met a number of times to consider SIPC coverage for Stanford’s victims. It would be salt in the wound of these victims for Congress to force those discussions to start over by approving new commissioners.
“We’ve known for some time that the SEC waited far too long to take action against Allen Stanford, and now they’re dragging their feet in responding to the victims,” Vitter continued. “I will continue to hold them accountable – including holding these nominations – until these fraud victims get an up-or-down answer from the SEC on SIPC so they can move forward in the process, and if necessary, file a judicial appeal.”
SIPC said it is analyzing the SEC’s recommendation and indicated it would make a decision soon.
Abshire has rejoined the Lafayette Bar Association, where she previously served as marketing coordinator under longtime Executive Director Susan Holliday
Home-grown Baton Rouge market/deli heads to Lafayette.
Deadline for submitting noms for annual competition is March 15
Whitney Bank officials have confirmed that the downtown branch will cease to exist when it relocates its regional headquarters to River Ranch at the end of May.
Downtown Lafayette restaurant launches new concept near Le Triomphe
Reamco founders Brent Milam and Ashley Lane now shareholders in acquiring company and part of its management team.
The board hopes to recover all fees paid, plus one-half, along with what could amount to hundreds of thousands in additional penalties.
Oh, the irony... or something like that.
The Louisiana Workforce Commission said Friday that initial claims rose to 2,125 from the previous week's total of 1,964. There were 2,887 initial claims during the comparable week in 2013.
Oilfield service company’s year-over-year revenues climbed 3.7 percent.
Move is part of company-wide consolidation of residential call centers.
Contentious deposition renders LOGA chief too ill to testify. Here's why.
Proposal for the upcoming legislative session would set Louisiana’s minimum wage at $10 per hour, beginning in 2015, up from the federal rate of $7.25 per hour.
Patrick Kane II recalls his mother awakening him 50 years ago to say his dad’s plane was missing.
His health affected by a contentious deposition last week, the LOGA chief says he can't testify (court will reconvene March 10).
Chair of the energy committee, Mary Landrieu (discussing the urgency of Keystone with Canadian Foreign Minister John Baird) should get the respect she deserves in Louisiana.
A fundraiser co-chaired by former U.S. attorneys from both sides of the political aisle could signal the end of Mike Harson’s long grip on the D.A.’s office.
Former W. Home Furnishings owner Rene Ward faces seven years in prison.
Stuller’s Danny Clark focuses on satisfied customers and effective employees as he settles in as the company’s president/COO.
Sterling Ford-Lincoln of Opelousas ribbon cutting and the State of the Parish address
Increases in higher-end home sales say a lot about the health of the overall market.
Who joined whom or got promoted?
World-class athlete riding high in custom bike biz.
Setting the record straight on that February story in HuffPo
Liability waivers — what you need to know before you sign