All victims should be entitled to the protections of the SIPA
February 10, 2012
By SIVG
The Honorable Judge
Robert L. Wilkins
US District Court for the District of Columbia
333 Constitution Avenue NW
Washington D.C. 20001
The United States of America
Honorable Judge Wilkins:
The undersigned, non-US citizens, victims of the Stanford Ponzi scheme, very respectfully address this urgent letter to you, accompanied by
evidences that we have collected with regard to marketing materials of the Stanford International Bank as well as other Stanford entities,
which were used in the scam for sale of CDs by most financial advisors involved in this terrible crime defrauding thousands of people worldwide.
Stanford's victims are predominantly people who invested their life savings in the Stanford entities because they trusted U.S. legal regulations
which seemed to support the Stanford businesses. Stanford's marketing portfolio generally included publications with the SEC, FiNRA and SiPC
logos on.
The companies controlled and directly or indirectly owned by Allen Stanford operated in a highly interconnected fashion to advance the selling of
SiBL CDs. In addition, Stanford's financial advisors relied on the apparent legitimacy offered by US regulation of Stanford's US brokerage subsidiary
(SGC) in order to generate sales of SiBL CDs. Likewise, in order to buy CDs through the Stanford Financial Group of Companies (SFG), a global network
of financial services companies based in Houston, Texas, innocent investors from different places and countries were made to submit an account
application that bore the SiB logo and indicated that customers were entering into an agreement with SGC, an NASD/FiNRA and member of SiPC.
On the other hand, the SEC has alleged in its civil suit against Stanford et al., that, the SFG of Companies operated a massive Ponzi scheme; and,
an entity that operates as a Ponzi scheme is a matter of law. Therefore, any insolvent entity cannot issue real securities and, the SiPC/SiPA has
previously been used --Old Naples Securities-- to protect investors regardless of the fact that the securities were fictitious, as in the case of
SiBL CDs.
Judge Wilkins, if the SiBL CDs had no value due to the fact that most of the money was stolen in a Ponzi scheme, then the SiBL CDs cannot be replaced,
can they? Therefore, when missing securities cannot be replaced by SiPC, a client of the bank is entitled to compensation of his/her net equity
investments; this is the CDs in our case. Besides, all victims' life savings were stolen by NASD/FiNRA-registered financial advisors, members of SiPC,
mostly vice-presidents, as official representatives not only for the SGC, but also for the conglomerate of entities of the SFG, including the SiBL
and the STCL in Antigua.
Finally, it is well documented that during more than a decade, Stanford Financial had printed and distributed to its Financial Advisors thousands
of brochures offering SiBL CDs. Additionally, Stanford Financial launched an intensive TV advertising campaign in The United States to promote the
sale of SiBL CDs. By 2008, Stanford Financial had distributed nearly 6,000 SiBL CD "Accredited Investor" packets to investors under the Reg. D
offering.
With all due respect, the Stanford International Victims present the attached evidences to you, which we hope be considered in Court for the current
litigation SEC v. SiPC.
Very truly yours,
The Stanford International Victims Group
February the 9th, 2012
Contact us at: www.sivg.org
The following business cards show "different company's name" having the same Stanford logo/name, and the same Email-Domain "stanfordeagle.com". More Evidences.
Here is the letter delivered to Honorable Judge Wilkins, received and sealed by the US District Court.
Mr. Representative
Dr. BILL CASSIDY
Washington DC Office
1535 Longworth HOB
Washington, D.C. 20515
The United States of America
Distinguished Dr. Cassidy:
The undersigned, non-US citizens, victims of the Stanford Ponzi scheme, very respectfully address this urgent letter to you, accompanied by
evidences that we have collected with regard to marketing materials of the Stanford International Bank as well as other Stanford entities,
which were used in the scam for sale of CDs by most financial advisors involved in this terrible crime defrauding thousands of people worldwide.
Stanford's victims are predominantly people who invested their life savings in the Stanford entities because they trusted U.S. legal regulations
which seemed to support the Stanford businesses. Stanford's marketing portfolio generally included publications with the SEC, FiNRA and SiPC
logos on.
The companies controlled and directly or indirectly owned by Allen Stanford operated in a highly interconnected fashion to advance the selling of
SiBL CDs. In addition, Stanford's financial advisors relied on the apparent legitimacy offered by US regulation of Stanford's US brokerage subsidiary
(SGC) in order to generate sales of SiBL CDs. Likewise, in order to buy CDs through the Stanford Financial Group of Companies (SFG), a global network
of financial services companies based in Houston, Texas, innocent investors from different places and countries were made to submit an account
application that bore the SiB logo and indicated that customers were entering into an agreement with SGC, an NASD/FiNRA and member of SiPC.
On the other hand, the SEC has alleged in its civil suit against Stanford et al., that, the SFG of Companies operated a massive Ponzi scheme; and,
an entity that operates as a Ponzi scheme is a matter of law. Therefore, any insolvent entity cannot issue real securities and, the SiPC/SiPA has
previously been used --Old Naples Securities-- to protect investors regardless of the fact that the securities were fictitious, as in the case of
SiBL CDs.
Dr. Cassidy, if the SiBL CDs had no value due to the fact that most of the money was stolen in a Ponzi scheme, then the SiBL CDs cannot be replaced,
can they? Therefore, when missing securities cannot be replaced by SiPC, a client of the bank is entitled to compensation of his/her net equity
investments; this is the CDs in our case. Besides, all victims' life savings were stolen by NASD/FiNRA-registered financial advisors, members of SiPC,
mostly vice-presidents, as official representatives not only for the SGC, but also for the conglomerate of entities of the SFG, including the SiBL
and the STCL in Antigua.
Finally, it is well documented that during more than a decade, Stanford Financial had printed and distributed to its Financial Advisors thousands
of brochures offering SiBL CDs. Additionally, Stanford Financial launched an intensive TV advertising campaign in The United States to promote the
sale of SiBL CDs. By 2008, Stanford Financial had distributed nearly 6,000 SiBL CD "Accredited Investor" packets to investors under the Reg. D
offering.
With all due respect, the Stanford International Victims present the attached evidences to you, which we hope be considered in your plans to file
legislation to allow investors of R. Allen Stanford to individually opt out of a federal lawsuit for one-time buyouts of up to $500,000. Improving
SiPC Act of 2012 legislation is firmly related to current litigation SEC v. SiPC.
Very truly yours,
The Stanford International Victims Group
February the 9th, 2012
Contact us at: www.sivg.org
The following business cards show "different company's name" having the same Stanford logo/name, and the same Email-Domain "stanfordeagle.com". More Evidences.
READER DISCUSSION
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Showing 4 comments...
| Sanchez wrote on February 12, 2012 at 10:52 |
| All those companies were just one company called STANFORD! Everybody must receive SIPC insurance. We want Justice please! |
| International Victima from Vzla wrote on February 13, 2012 at 06:48 |
| Thank you so much SIVG for your dedication and hard work for the benefit of all victims. I hope the US authority can listen to your plea and we could receive a financial relief from SIPC. |
| George wrote on March 8, 2012 at 14:06 |
|
This is in response to the Feb 12 letter to Judge Wilkins. First, let me say that I feel very sorry for the Stanford fraud victims. I have friends who lost everything. They believed their financial advisors who told them they were making a safe investment. And the advisors believed that to be the case. However, in reference to SIPC coverage, the SIBL disclosures that all purchases of the CD's were given and acknowledged, stated clearly that they were not subject to any US regulations or insurance. I still have copies of what a Stanford advisor gave to me when I considered investing in SIBL CD's. For this reason, the arguement in the letter that the investors relied on the US legal system is not very compelling. Regards, George. |
| SIVG Administrator wrote on March 8, 2012 at 18:49 |
| Thank you for your comment George. It is really a complicated case. It seems the US investors were specifically told in writing that SIPC does not protect their investments. However many international investors were told in writing that SIPC DOES protect their investments. It seems sometimes the FA made use of "SIPC" in order to get new investors. As I wrote, this is really a complicated case... |