Ron Stein, President of the Network for Investor Action and Protection (NIAP), Statement on Introduction of Equitable Treatment of Investors Act:
“Representative Scott Garrett’s Equitable Treatment of Investors Act is a compassionate, logical and desperately needed bill that will force agencies that have failed to protect investors to follow the law that they are so flagrantly breaching. We greatly appreciate Rep. Garrett’s efforts to introduce this clarification of Securities Investor Protection Act law. He is standing up for innocent investors who have been both abandoned by the Securities Investor Protection Corporation and attacked by an overzealous SIPC Trustee who is blatantly defying what Congress intended under SIPA law.”
“Customers of broker-dealers regulated by the Securities and Exchange Commission who made good-faith investments are bound by law to rely on their customer statements as evidence of what securities they own. But these statements are now being unilaterally dismissed by SIPA and the Trustee, denying rightful reimbursement for nearly two-thirds of innocent Madoff customers. Moreover, after repeated failures by the SEC and the Financial Industry Regulatory Authority to detect the fraud, the Trustee has initiated clawback lawsuits against nearly 1100 innocent investors who relied on those statements and who were completely unaware that a fraud was being perpetrated.”
“We would like to thank Rep. Garrett and his staff who have lent a sympathetic and understanding ear to NIAP and have been inspirational in their response to our devastation.”
“Congress passed the Securities Investor Protection Act 40 years ago to protect investors against broker theft and fraud and boost investor confidence. Current efforts to both disqualify the values on account statements and further savage innocent investors amount to an egregious attack on the investor protection system.”
“Rep. Garrett’s common sense bill does not change the law. In fact, it strongly clarifies what the existing law is and is meant to be. It confirms the Trustee’s rightful responsibilities to pursue only those culpable and enforces the spirit of a good law that already exists – one designed to protect and a provide assistance to innocent investors.”
About NIAP (www.investoraction.org)
The Network for Investor Action and Protection (NIAP) is a not-for-profit organization. Founded by former investors of Bernard L Madoff Investment Securities Inc, NIAP seeks to enhance protections for all investors, while pressing for relief for innocent victims of securities frauds.
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