Stanford victims may get some relief in September

The Securities Investor Protection Corporation says it will announce on or around September 15 whether it will reimburse, up to $500,000 per claim, those who lost money investing in the $7 billion alleged Ponzi scheme perpetrated by Robert Allen Stanford. “My gut feeling is they’re going to pretty much have to OK it,” says Blaine Smith, a retired refinery worker in Baton Rouge who lost about $1.5 million and stands to recoup about $850,000 because he and his wife had multiple Stanford investments. “We’re just hoping and praying they do (approve it). It would be a huge relief, because the whole thing has been the most humiliating and demoralizing thing that’s happened to me in my life.” Last month the Securities and Exchange Commission officially referred the matter to the SIPC, a congressionally created insurer against insolvent brokerage firms. SIPC covers customers when a broker becomes insolvent, and normally doesn’t cover fraud. But the SEC ruled that Stanford stole from customers by selling worthless CDs. Since 2009, the SIPC has informally advised that its protections weren’t available for Stanford investors. 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. —Steve Sanoski