Attorneys for 86 people affected by convicted Ponzi schemer Robert Allen Stanford’s $7 billion fraud argued Thursday in Baton Rouge for class-action certification of their civil suit against state financial regulators and a Pennsylvania corporation. The investors allege the regulators and SEI Investments Co. failed to protect them from Stanford’s phony investment scheme. If granted by state District Judge Mike Caldwell, class-action certification would permit those 86 people to represent all Stanford investors in Louisiana except for any who may choose to opt out of the litigation. In the event of a final decision in the case in favor of investors, certification could greatly increase the size of any total cash award.
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The Securities Investor Protection Corporation (SIPC), which covers brokerage customer account losses in the event of fraud or the firm’s collapse, is trying to be the white knight in recovering investor funds in the $60 billion Madoff ponzi scheme. Yesterday, SIPC announced “nearly $2.5 billion in checks were mailed to victims in the liquidation of Bernard Madoff Investment Securities LLC (BLMIS). “SIPC today applauded the hard work of Trustee Irving H. Picard and his attorneys in reaching that major milestone.” Read Forbes report [...] (Reuters) – Wall Street’s top self-regulator wants to make information about brokers more accessible to investors, which would hold those in the industry more accountable for their past actions. The Financial Industry Regulatory Authority in September voted to submit proposals to the U.S. Securities and Exchange Commission that would make information in its BrokerCheck system easier for investors to find, and keep records of even those dismissed investment-related civil actions on permanent public file. More on Reuters [...] Bernard Madoff’s victims will soon receive $2.48 billion to help cover their losses, by far the largest payout since the swindler’s massive fraud was uncovered nearly four years ago. Checks ranging from $1,784 to $526.9 million were mailed Wednesday to 1,230 former customers of Bernard L. Madoff Investment Securities, according to Irving Picard, the trustee liquidating the firm. The latest payout more than triples the total recovery to $3.63 billion, Picard said Thursday. Thus 1,074 customers with valid claims, or 44 percent of the total number, will be fully repaid, he added. WASHINGTON, Sept. 20, 2012 /PRNewswire via COMTEX/ — SIPC Advances Used to Facilitate Recovery of $9.1 Billion for Customers Nearly $2.5 billion in checks were mailed Wednesday (September 19, 2012) to victims in the liquidation of Bernard L. Madoff Investment Securities LLC (BLMIS). The Securities Investor Protection Corporation (SIPC) today applauded the hard work of Trustee Irving H. Picard and his attorneys in reaching that major milestone. Approximately $17.3 billion in principal is estimated to have been lost in the Ponzi scheme by direct BLMIS customers who filed claims. When combined with the funds already returned to BLMIS customers, the second interim distribution satisfies more than 50 percent of the total Madoff accounts with allowed claims. Nearly 1,100 accounts were covered by the second distribution. More on MarketWatch [...] NEW YORK (CNNMoney) — Victims of Bernard Madoff’s Ponzi scheme will receive another $2.5 billion of their stolen funds, a court-appointed trustee said Thursday. Irving Picard, the trustee in charge of recovering assets lost to the biggest Ponzi scheme in history, said that he mailed the checks Wednesday to 1,230 investors who were burned by Madoff. The payments range from $1,784 to as much as $526.8 million, with the average payment being $2 million, according to Picard’s office. This is in addition to nearly $1.15 billion worth of payments that have already been sent out, bringing the total funds that have been recovered and distributed to victims up to more than $3.6 billion. See CNN Money Report [...] Antigua St. John’s – Attorney General Justin Simon has responded to the latest legal ruling in the ongoing Stanford Ponzi Scheme saga. Daniel Bystrom has been mulling a hedge fund launch for five years. But it took his employer’s collapse to make him take the plunge. AUSTIN (CN) – A New York-based investment firm reneged on selling $4.8 million worth of “valuable claims” in the Bernard Madoff securities firm liquidation, an Austin-based investment company claims in court. Blue Creek Funding LLC sued Fisher Family Associates LP in Travis County Court. Nearly $300 million in ZeekRewards.com assets have been recovered by the receiver handling the closed Lexington online company that is accused of operating a Ponzi scheme. A U.S. district judge on Aug. 21 appointed Kenneth Bell as temporary receiver for Rex Venture Group LLC, the parent company of ZeekRewards. More in the Winston-Salem Journal [...] |
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