Fallout from the Allen Stanford case is still growing. In the latest clash over whether shareholders should be protected from losses á la Bernard Madoff, the National Association of Independent Broker-Dealers has sent a letter to Mary Schapiro, chairman of the SEC, that says the Securities Investor Protection Corp. should not have to cover those losses. Stanford was charged in 2009 in a Ponzi scheme that defrauded investors of more than $7.2 billion via “safe” offshore certificates of deposit. As previously reported by AdvisorOne.com in early July, “improbable, if not impossible” guaranteed rates of return were promised on the CDs issued by the Antigua-based Stanford International Bank. Read Advisor One report here.
