For the past couple of years, Iíve been leading the fight for fair treatment for thousands of Louisianians who were victims of an alleged Ponzi scheme run by financier Allen Stanford.
Most of these investors are everyday folks – they could be your neighbors and relatives. And many of them lost their life savings in what appears to be a massive, multi-billion-dollar fraud.
Earlier this year, the Securities and Exchange Commission (SEC), the federal agency that enforces laws that governs financial services companies like the Stanford Financial Group, ruled that these victims are eligible to receive coverage from SIPC, a federal entity that provides insurance through private funds for investors in cases like this. And this week, we received some great news for the victims. Because SIPC has refused to comply with the SECís ruling, the SEC filed a lawsuit to force them to cover the victimsí losses.
Iím going to continue urging SIPC to do the right thing and not tie this up in court. These victims deserve compensation sooner rather than later – this process has already dragged on for two years, and thatís too long.
As a member of the Senate Banking Committee, Iíve pushed for significant reforms in the financial services industry. And with so many Louisianians hurt by the alleged Stanford fraud, it remains one of my top priorities to ensure that these victims get the coverage they deserve.