McGinn-Smith Victims to benefit from H.R. 3482

H.R. 3482 and S.1725, Restoring Main Street Investor Protection and Confidence Act serves to benefit McGinn-Smith victims as well. As indicated in Senator Schumer’s Press Release:
” In the case of the McGinn-Smith, Schumer’s plan would require SIPC to compensate the 900 investors that suffered $136 million in total losses, if the SEC refers the case to SIPC. Schumer has urged the SEC numerous times to refer the McGinn-Smith case to SIPC, but the SEC declined to do so after its referral of a case with similar facts – the Stanford Financial Group case – was overturned in court. Schumer explained that if his legislation gets passed, he would again urge the SEC to refer the McGinn-Smith case to SIPC, and argued that the similarity to the Stanford case, which the SEC did refer to SIPC, would give McGinn-Smith victims a strong argument on the merits. Schumer’s bill would also provide the SEC with additional flexibility to determine who qualifies for SIPC protection, which will help encourage their referral. Thus, Schumer’s legislation would open the door for McGinn-Smith victims to seek remuneration from SIPC.”
McGinn-Smith victims – we encourage and invite you to join NIAP – Network for Investor Action and Protection, and together we can move this much needed legislation forward. Click here to join – membership is free.