Support SIPC in its SEC Case on Stanford

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The NAIBD serves as an advocate for the Broker/Dealer community. It is our mission to positively impact rules, regulations, and legislation by facilitating a consistent, productive relationship between industry professionals and regulatory organizations and by providing education and member benefits for Broker/Dealers.

Today, we are writing to express our support of Securities Investor Protection Corporation?s (?SIPC?) stance versus the SEC in the unprecedented lawsuit demanding SIPC guarantee the value of offshore certificates of deposit issued by Stanford International Bank Ltd (?Stanford?). Our position is based on the facts, which include the legal limitations of SIPC protections, the allegedly fraudulent circumstances surrounding the losses incurred by Stanford investors, and the physical nature of the securities issued to Stanford investors.

SIPC?s own website clearly articulates their and our positions:

?The Securities Investor Protection Corporation was not chartered by Congress to combat fraud.?

We do not believe that SIPC or the brokerage industry should provide a backstop for events that transpired outside of the United States, for fraudulent investment schemes, in instances in which investors sought unrealistically high returns, and/or when physical certificates, however worthless, remain in the possession of investors.

In summary, we believe that covering the Stanford customers through SIPC is a misfit solution that sets an unsustainable precedent for the future. NAIBD encourages its members and the broad securities industry to express its support to SIPC by signing onto the petition below.

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Public Comments (81)
Jul 22nd, 2014
Someone from Mobile, AL signed.
Jul 13th, 2014
Someone from Woodway, TX writes:
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You are totally wrong. The CD's were sold by Stanford Group Company located in Houston, Texas. No money ever went o Antigua only into Stanford and Davis's pockets. You are protecting your own--not the investors that SPC was formed to protect.
Jan 10th, 2014
Someone from Delray Beach, FL signed.
Jan 10th, 2014
Someone from Delray Beach, FL signed.
Oct 21st, 2013
Someone from New York, NY writes:
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SIB was run by Sir Allen Stanford, Antiguan citizen, (until recently) resident, Knight, and largest private employer. SIB was domiciled, chartered, regulated and audited in Antigua, a country so corrupt that the book about it (freely available since published in the mid-80's) is called "Caribbean Time Bomb". Antigua's, "Minister of Justice" was Sir Allen personal lawyer, and since the scheme melted down, Antigua has expropriated investor's property, and taken over Sir Allen's profitable bank (Bank of Antigua) without compensation to the victims. In addition, Antigua has ignored it's extradition treaty with regard to Leroy King, unduobtably because Mr. King will implicate highers up (including two Antiguan Prime Ministers) in the fraud. I fail to see what the US SEC or SIPC has to do with this.
Aug 15th, 2013
Someone from Des Plaines, IL signed.
May 9th, 2013
Someone from Waynesboro, VA signed.
May 9th, 2013
Someone from Waynesboro, VA signed.
Apr 16th, 2013
Someone from Coppell, TX writes:
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Why wouldn't the brokerage industry want SIPC to protect investors who have their money stolen by SIPC member broker dealers, i.e. Allen Stanford. There were no CDs from a bank in Antigua. The owner of the broker dealer stole the money. That is why the SEC took "the Antiguan bank" into Receivership with the broker dealer in the U.S. The investments weren't just bad, they were never made. Allen Stanford is in jail for making the whole thing up to steal investor funds in a Ponzi scheme. Investors will never have confidence if SIPC doesn't protect them when the broker dealer steals their money instead of buying the securities they were sold. Congress and the securities industry should vehemently support SIPC paying the customers of a registered broker dealer who stole billions of dollars from its customers. That is what SIPC is for!
Sep 4th, 2012
Someone from Katy, TX signed.