Imagine you invest with a broker whose front doors, office plaques, coffee mugs, pencils, brochures, stationery, folders, office signage, and emails all proclaim that your investments are insured by SIPC – Wall Street’s so-called “Securities Investor Protection Corporation.”
Your broker tells you the stock market is overvalued. But he has a very safe, moderate-yield investment opportunity that entails purchasing certificates of deposits.
You like and trust your broker, and maybe have a long history with him. And CDs? Well, everyone knows that CDs are very safe. So you agree with your broker—he’s the expert after all. Indeed, since your brokerage firm, Firm X, is managing all your investments and since you just retired, you decide, at your broker’s urging, to put all your money into Firm X’s CDs–even your IRA funds.
The next day, the next month, or maybe the next year your brokerage firm goes under due to fraud. None of the money you spent on Firm X’s CDs, you learn, was actually invested in other securities to produce a return on Firm X’s CD. Instead, your money was stolen. It was used to pay the brokerage Firm X’s bills, including incredibly lavish salaries for its top brass.
You’re totally devastated. All your retirement savings, which you spent your entire working life accumulating, just went up in smoke. But there’s one silver lining – SIPC, with its promise of up to $500,000 of brokerage account protection.
You call up SIPC and request your insurance payment……………………
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For a full and open debate on the Stanford receivership visit the Stanford International Victims Group – SIVG official Forum http://sivg.org.ag/