Delegates urge SIPC to rule on Stanford victims’ claims

It’s been more than two months now since Securities Investor Protection Corp. said it would rule on whether or not those who lost money in the $7 billion ponzi scheme allegedly perpetrated by Texas financier Robert Allen Stanford should be reimbursed up to $500,000 per claim. Today, Congressman Bill Cassidy and 26 other members of Congress from Louisiana, Florida, Mississippi, Tennessee, Texas and Alabama signed a bipartisan letter to SIPC Chairman Orlan Johnson urging the SIPC to make a decision. The SEC determined five months ago that at least some victims of the scam are entitled to SIPC protection. SIPC, however, has informally advised since 2009 that its protections weren’t available for Stanford investors. “The victims of Stanford’s crimes … have been left in the dark throughout the SIPC’s deliberative process to such an extent that it begs the question of whether the SIPC is anything but completely unconcerned with their plight,” the letter to Johnson reads. “After more than 22 weeks, the Stanford victims and the American people want and deserve answers.” The letter goes on to say Congress does not desire to get directly involved in the matter, but adds, “If the SIPC continues to delay with their decision, we will use every asset at our disposal to provide assistance and guidance to those we represent.” Stanford was sued by the SEC and indicted on federal criminal charges in 2009. He has denied any wrongdoing while awaiting a trial, scheduled for next year, in federal custody.