SEC has duty to report Ponzi fraud to SIPC, judge rules

A federal judge in Miami ruled Friday that the U.S. Securities and Exchange Commission has a duty to report Ponzi schemes to the Securitized Investor Protection Corp. as soon as it suspects a Ponzi is occurring. The ruling means a proposed class action filed by investors in the R. Allen Stanford Ponzi scheme can proceed beyond a motion to dismiss. See South Florida Business Journal article here.

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