Judge Approves Protection for the Ponzied
TDH | December 15, 2008 at 05:29 pmby
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Just days after Bernard Madoff's Ponzi scheme was revealed, a federal judge approved an order which seeks to protect unsuspecting investors duped by the scheme.
U.S. District Judge Louis L. Stanton ordered that clients of Bernard Madoff's private investment business seek relief under a federal statute created to rescue cheated investors. Stanton also ordered that business be liquidated under the jurisdiction of a bankruptcy court and named attorney Irvin H. Picard as trustee to oversee that process.
Congress created the SIPC in 1970 to protect investors when a brokerage firm fails and cash and securities are missing from accounts. Funds can be used to satisfy the remaining claims of each customer up to a maximum of $500,000. The figure includes a maximum of up to $100,000 on claims for cash.
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