Gov't

Hope for Central Retirees Victimized by Stanford Trust

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    The following press release from Senator Vitter details actions which may ultimately restore the retirements of many families in Central.  Central's own Representative Bodi White helped begin this process by bringing the Stanford Victims Coalition to Congressman Bill Cassidy and Senator Davd Vitter to escalate this fight to the national level in Washington DC.

    Press Release:  SEC Concludes Stanford Victims Entitled to Receive SIPC Coverage – Ruling on SIPC coverage comes day after Vitter blocked SEC nominations. Vitter drops hold on nominees today

    (Washington, D.C.) – U.S. Sen. David Vitter today announced the Securities and Exchange Commission has concluded that victims of the alleged Stanford Group Co. Ponzi scheme are entitled Securities Investor Protection Corporation coverage for their losses. Vitter will release the hold he placed yesterday on the nominations of two Securities and Exchange Commission members.

     “This is big, big news,” said Vitter.  “Many of these folks in Louisiana and along the Gulf region lost their life savings, and the SEC’s ruling today is certainly gratifying for the victims. There will likely be litigation, and no one will be getting a check in the mail tomorrow, but still – a huge step and a sigh of relief for many. I’ll continue working with the SEC until the victims have complete clarity of the process and I urge the SIPC Board of Directors to take up the issue and not to drag out a decision. I asked for an up-or-down answer from the SEC on SIPC, so consequently, I’m releasing my hold on Daniel M. Gallagher and Luis Aguilar.”

    "I speak for all of the victims, their children and families when I say how pleased we are with the SEC's determination that SIPC protection be extended to our victims,” said Jean Anne Mayhall, Founder of Louisiana Stanford Victims Group. “It has been a long time coming, but we were always confident that once presented with the facts and given the overwhelming Congressional support for our plight, the Commission would use the laws we have in place to help Stanford Group Company customers.”  “There are no words to amply express the gratitude we feel toward Senator David Vitter and his staff who have worked tirelessly since early 2009 on this case.  Without the guidance, patience and experience of Senator Vitter, I do not think the 1800 victims in my state would have seen this historic day," Mayhall added.

    At a U.S. Senate Banking Committee hearing last year, Vitter raised concerns about the SEC’s misleading statements about its handling of the Stanford case.  An Inspector General’s report showed the SEC’s examination office had been looking into the Stanford Group since 1997 and were concerned it was a “possible Ponzi scheme,” but at a previous banking committee hearing, SEC officials claimed the investigations only began in 2004.  The SEC has five commissioners who are appointed by the President with the advice and consent of the Senate.  Mr. Daniel M. Gallagher has been nominated to fill the seat being vacated by Commissioner Kathleen Casey and the Honorable Luis Aguilar is being re-nominated because the term for which he is now serving expires June 5, 2010. Yesterday following a U.S. Senate Banking Committee hearing, Vitter raised concerns that because the Commission was so close to a ruling, bringing a new commissioner into the mix would unnecessarily slow down the pace. 

1 Comment

  1. Christina Carabini

    June 17, 2011 at 7:47 am

    David Vitter announced that he will block the nominations of two Securities and Exchange Commission members until the SEC responds to a request by victims of the alleged Stanford Group Co. . Unfortunately the SEC has not yet given the Stanford victims an answer despite my repeated conversations with Chairwoman Mary Schapiro said Vitter.

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