The Ponzi Scheme Investor Protection Act of 2011: What Ohio Investors Want to Know

In 1970, a new federal law went into effect that sought to protect the assets that investors lost when brokerage firms failed. That legislation is known as the Securities Investor Protection Act.

In 2011, US Representative Gary Ackerman introduced legislation that would extend protection to additional investors. Mr. Ackerman, reportedly motivated by the unprecedented actions of the Bernie Madoff Ponzi scheme, introduced the Ponzi Scheme Investor Protection Act of 2011.

What if the Ponzi Scheme Investor Protection Act of 2011 Becomes Law?

If passed into law in its proposed form, the Ponzi Scheme Investor Protection Act of 2011 would:

• Restrict the power of trustees appointed by the Securities Investor Protection Corporation (SIPC) to take back money from innocent Ponzi scheme victims. Currently, trustees are allowed to take back funds from innocent victims regardless of whether they had knowledge of the scam. The proposed law would only allow take backs from investors if they were complicit in the scheme.
• Change the way an investment victim's claim is calculated to account for the rise in price over the course of their investments
• Expand the number of victims eligible for insurance
• Increase oversight and accountability of SIPC appointed trustees
• Provide a more timely and equitable consideration of claims after the discovery of a large Ponzi scheme
• Make the provisions of the law retroactive for large Ponzi schemes with investments of more than $1 billion

The bill has not yet been voted on by the House of Representatives and is not yet law. However, that does not mean that victims of modern day Ponzi schemes, such as the one allegedly run by Bernard Madoff, are without legal options.

Why Call an Experienced Columbus Securities Fraud Attorney Now

If you have been the victim of a Ponzi scheme or other type of investment scam, then you may be entitled to a legal recovery regardless of whether this bill becomes a law. Please contact an experienced Columbus investment fraud attorney today for a free consultation. The experienced Ohio securities fraud attorneys at the Law Firm of Meyer Wilson can be reached at 614-224-6000 or toll-free at 1-866-827-6537.

Please request our FREE book Five Signs of Investment Fraud... And What to Do if it's Happened to You to learn more about your rights and potential recovery.