Madoff’s fraud also brought to light the inadequacies of the SIPC to protect American Investors.
Although they were created to promptly pay investors of troubled brokers, SIPC has notoriously denied coverage.
SIPC is funded by its broker members (not the government). These members paid a measly $150 / year for coverage of all their customers. Thus, Bernard Madoff paid $150 in 2008 to insure $64 Billion worth of his investors’ portfolios. This failure to properly fund SIPC is in violation of their statute, as is the Trustee’s incorrect methodology of paying the victims.
For more information, visit http://www.youtube.com/mfp1020 for an enlightening view of a recent Congressional hearing.
Please join the Madoff Coalition for Investor Protection as we work toward ensuring that all American investors are protected by SIPC-currently that protection is not truly offered.
madoffcoalition@gmail.com