Washington, DC – U.S. Congressman Charles W. Boustany, Jr., MD (R-Southwest Louisiana) today praised the ruling by the Securities and Exchange Commission (SEC) providing certain individuals who invested in the Stanford Group Company, the perpetrator of one of the largest Ponzi schemes in American history, to the protections of the Securities Investor Protection Act (SIPA).

“After many bureaucratic delays, the wheels of justice are finally moving on this case,” Boustany said. “I have advocated on behalf of the victims of this massive Ponzi scheme, and our efforts in Washington have finally paid off. I am pleased the SEC took the actions necessary to compensate the victims of this scheme.”

According to the SEC, “based on the totality of the facts and circumstances of the case…Securities Investor Protection Corporation member Stanford Group Company (SGC) has failed to meet its obligations to its customers. The Commission…therefore is making a formal request to the SIPC Board of Directors to take necessary steps to institute a liquidation proceeding of SGC.” The Commission also asked the Securities Investor Protection Corporation (SIPC) to initiate a court proceeding under SIPA to liquidate the broker-dealer.

Congressman Boustany has been active in the fight for victims of the Stanford Ponzi scheme. In April, he demanded answers from the SEC on their efforts to assist Stanford victims. The SEC response defended their two-year investigation but provided no further details. Congressman Boustany also introduced the Ponzi Scheme Victim’s Tax Relief Act of 2011 with Representative Bill Pascrell, Jr. (D-NJ). The bill expands the net operating loss carryback period for investors in a Ponzi-type scheme from five to 10 years. Victims who lost money in a Ponzi scheme can recoup the losses by declaring them as net operating losses during previous tax years and collecting refunds from those tax years.

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