Reuters – A federal district judge on Tuesday [July 3] delivered a blow to the victims of Allen Stanford’s $7 billion Ponzi scheme, rejecting a request for an industry-backed fund to start a court proceeding that could lead to victim compensation.
The U.S. Securities and Exchange Commission had sought to force the Securities Investor Protection Corp. to start liquidation proceedings for the victims, some of whom lost millions of dollars to the fraud. The judge found that the SEC did not meet its legal burden of showing why SIPC should be compelled to act.
