Tuesday 11 October 2011

SVC Claiming SIPC for US Victims Only

To all international victims who may be eligible for SIPC - Please read this latest communication from Angela Shaw to the SVC very carefully. She is negotiating with SIPC to limit any payment to only US citizens.

Instead of asking SiPC to reduce the ceiling of $500k per claim, and extend the net to all investors, which would be a much fairer distribution that every Stanford victim could benefit from, once again the US victims have shown their true colours, and their lack of consideration for anyone but themselves.

If the (mainly Louisiana) STC IRA account holders are to be included, then so should all the other investors who purchased through SGC registered representatives.

Angela is still claiming to the US Government she represents all 28,000 victims worldwide, and they are witless enough to believe her.



SVC Members,

Again, I don’t have a lot of news about the SIPC Board vote, but I do have some.

Yesterday, Senator Vitter spoke with SIPC Chairman Orlan Johnson and the feedback I have received is that the Senator continues to feel the SIPC Board is moving in the right direction and needs two to three more weeks of reviewing the facts and the law. Senator Vitter will meet again with the Chairman in two weeks.

Unfortunately, the Stanford entities’ records are still be reviewed by the SIPC Board and it will be another few weeks before a formal decision is announced.

Also yesterday, the SVC’s SIPA lawyer and I had a lengthy conference call with the SIPC General Counsel. She was unable to share where the Board is in its review process, but the detailed questions I was asked about the SVC’s demographic data was insightful. While this is purely speculation on my part, the line of questioning led me to believe the Board is leaning toward accepting the SEC’s request because they are trying to determine how many of the victims were SGC customers and if the SEC’s directive is followed, would that satisfy the investors the SVC’s counsel has represented in its arguments (which has always been all SGC US customers).

The SEC’s request is exactly what the SVC and our lawyer have pursued as his expert opinion is the law is limited to customers of a SIPC member, and he would not have made a broader legal argument to include affiliate entity investors like those who bought from SGC Venezuela (foreign affiliates are excluded in the statute).
That said, if there is a liquidation, those investors can likely file claims and have a court venue to dispute any denial of claims – a right they do not currently have.

I know this is complicated for some of you, but the corporate structure of the Stanford entities makes this case so very unique, and there are thousands of international investors who will likely not qualify for SIPC if the SIPC Board accepts the SEC’s request. My understanding is that all US investors were customers of SGC unless they bought the CDs from a Stanford rep in another country.

As I have mentioned before, I cannot determine how a SIPC trustee would determine whether someone was a brokerage customer, but from what I have seen almost 100% is that
all US investors and a couple of thousand international investors did purchase the CDs through SGC. The STC IRA accounts were included in the SEC’s recommendation also because those were sold by SGC registered representatives.

I think these developments are reason to be hopeful and I will continue to update you all when I know anything. I have emphasized with the SIPC staff and Board that it would ease a lot of minds if there was a defined time frame for this process. They are unable to do that right now, but continue to assure me that the Board is working as quickly as possible and that they do not intend to delay the decision any longer than absolutely necessary.

Keep praying, my friends!

Sincerely,

Angela

Director and Founder

Stanford Victims Coalition

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