WASHINGTON—U.S. Senator Bill Cassidy, M.D. (R-LA), introduced legislation to ensure victims of Allen Stanford’s Ponzi scheme can receive compensation for what they lost.
“Allen Stanford’s victims deserve justice,” said Dr. Cassidy. “Many were robbed of life savings and left with nothing. It’s wrong the court denied the opportunity to recover money stolen from them while the receiver squanders millions on lawyer and consultant fees.”
In 2014, the U.S. Court of Appeals for the District of Columbia Circuit upheld a 2012 district court ruling that the Securities and Exchange Commission (SEC) failed to prove victims of the Ponzi scheme are “customers” eligible for compensation by the Securities Investor Protection Corporation (SIPC) under the narrow definition of the law.
Cassidy’s proposed amendment to S. 2155 redefines “customer” and authorizes the SEC to take over the Stanford Financial Receivership and force liquidation of assets to victims.