Sense on Cents

You can rest assured that the powers that be on Wall Street would just as soon have the Madoff saga over. The Madoff scam perpetrated on investors is an ugly reminder of the non-existent financial regulatory system during the better part of the last twenty years.

I also believe many in Washington also might like to see the Madoff saga quietly pass by. The failures of the SEC, FINRA, and SIPC in this greatest of scams are an ugly reminder of the Wall Street-Washington incest.

Well, while many of the incestuous partners would like to turn the page, there remains a lot of filth that still needs to be cleaned up and a lot of individuals and institutions that need to be held to account.

To that end, I commend the Madoff investors and I stand by them as they announce a suit tomorrow against the directors of the Securities Investor Protection Corporation (SIPC).

America should not allow itself to be fatigued by the fight for justice and fairness in this Madoff scam. The endless pursuit for real transparency and integrity does not measure itself by a calendar but rather by results.

The fight continues.

MADOFF VICTIMS TO ANNOUNCE LAWSUIT ALLEGING FRAUD AGAINST DIRECTORS OF SECURITIES INVESTOR PROTECTION CORPORATION

Suit charges SIPC fraudulently induced Madoff investors to believe they had up to $500,000 insurance coverage on securities and seeks compensatory and punitive damages

New York, NY –Bernie Madoff investors on Thursday will announce a lawsuit against the directors and key officers of the Securities Investor Protection Corporation (SIPC) for what they allege is a massive investment insurance scam.

Madoff victims and their attorney will gather on the steps of Federal Hall in Lower Manhattan, opposite the New York Stock Exchange, to announce the legal action and call for Congressional reform of the quasi-governmental SIPC agency.

The class action lawsuit, to be filed in New Jersey federal court, accuses the SPIC directors of orchestrating a scheme to fraudulently induce thousands of Madoff victims to invest in a SIPC-insured broker with the deliberate intention of denying SIPC insurance in the event of a loss. The plaintiffs claim that the defendants are personally liable for the damages the plaintiffs and others similarly situated have suffered.

The financial industry which is Wall Street has utilized the cover of SIPC protection to promote its business. As such Wall Street needs to be held accountable.

Wall Street paid out approximately $140 billion in bonuses in 2009. Bonuses should only have been paid after firms involved in the fraudulent distribution of auction-rate securities made investors whole and after Madoff investors received their SIPC payouts.

LD

This entry was posted on Wednesday, February 24th, 2010 at 2:39 PM and is filed under Bernie Madoff, General, Madoff, SIPC. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.