Dear Friend:
As you may know, the Second Circuit Court of Appeals recently released its ruling on the Net Equity issue: the net investment method of calculating net equity, as advocated by the Trustee, is “legally sound.” NIAP strongly disagrees with this ruling, but we were prepared for it. Immediately after the ruling, we released a statement that was included in articles by The Wall Street Journal, CNBC, CNN Money, Bloomberg, and Fox Business and USA Today.
We will not stop fighting this injustice. Through this ruling, the court has told investors that their account statements hold no value. It unfairly leaves small BLMIS victims holding the bag while the titans of Wall Street who helped perpetuate this devastating fraud continue to escape accountability. We will support and assist every effort to move this case to the Supreme Court of the United States. Investors should note that this ruling is focused on “net equity,” and is separate and apart from the Trustee’s clawback actions.
Today’s ruling demonstrates how important it is for Congress to tell the American people that the small, innocent investor will not be left behind.
We must help Congress step up and support Chairman Garrett’s legislation, HR 757 – The Equitable Treatment of Investors Act. As Congress comes back into session in September, expect an email from us outlining a new letter writing campaign coordinated through our Online Advocacy Center to help push this legislation over the finish line.
We have been working for over a year with Chairman Garrett and a bi-partisan group in the House of Representatives to reaffirm the integrity of the account statement, and to help bring about this legislation. HR 757 will protect the integrity of one’s account statement as the final determinant of one’s value in the event of a failure of a broker-dealer. This bill will also protect innocent, non-complicit investors from being sued by SIPC, the very organization that was created to protect them. Finally, by enacting HR 757, Congress would effectively reverse this recent court ruling.
Join with us now!
Sincerely,
Ron Stein, President
