Most Popular Choices
Share on Facebook 4 Printer Friendly Page More Sharing
Exclusive to OpEd News:
OpEdNews Op Eds   

Your Investments Are Not Safe

By       (Page 1 of 1 pages)   2 comments
Follow Me on Twitter     Message Ronnie Sue Ambrosino
Become a Fan
  (1 fan)
eagle
eagle
(Image by self)
  Details   DMCA


Do you trust your financial account statements? Madoff investors did.

Do you think the SEC makes sure that your trades are executed? The SEC didn't check if Madoff made any trades -" even when they were told that the market volume of S&P 100 options were not enough to cover what Madoff reported in his clients' statements.

Do you think your investments are covered by SIPC insurance?
Madoff investors did.

What if you invested $10,000 in Enron. Over time, you sold enough
shares to make more than $10,000 profits. Then Enron is exposed as a fraud and you were sued to give back the profits to offset the losses incurred by other investors. Of course that would never happen. But it is happening to innocent Madoff investors.

What if you found out that your pension plan was invested in a Ponzi
scheme and you were retired long enough to have been paid more than you put in. You would expect to be covered by the Pension Protection Act. However, if you were a long-time Madoff investor and took out more than you put in, you would get nothing from Securities Investors Protection Corporation (SIPC) insurance and then you would be sued for the difference. Deprived of your savings and income, you would suffer greatly. And you were innocent. And SIPC was created when the investment firms wanted to get rid of stock certificates and insure against the anticipated risk of fraudulent statements.

Let's say you invested in a mutual fund that had an account with a
Ponzi scheme. You would expect to receive SIPC insurance because of your losses. You learn that SIPC pays up to $500,000 per account and that would go to the mutual fund. You would get a tiny share if
anything. This is happening to thousands who indirectly invested in
Madoff through "feeder funds'.

Fortunately, Congressman Scott Garrett (R-NJ) understands that these wrongs must be righted to justify your confidence in your financial statements. Garrett's bill, the Equitable Treatment of Investors Act, would base your claim on your last statement - and not on the balance of what you put in and took out -" as it is now. The Act also protects innocent investors against being sued to repay the false profits they withdrew. Many hope this Act will be expanded to bring further justice to indirect investors. Of course, those parties who were complicit in the fraud will be severely punished.

In Garrett's own words, "If the current law is not followed, no customer can ever have confidence in his or her dealings with a broker.  That is contrary to the policy goal of encouraging investment, which is critical to the economic renewal our country needs."
Interesting 1  
Rate It | View Ratings

Ronnie Sue Ambrosino Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

I am a retired computer analyst and former Yoga instructor originally from New York. My life changed abruptly on December 11, 2008 when Bernard Madoff, my only source of income, confessed to running largest Ponzi scheme in history. I've been (more...)
 
Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Follow Me on Twitter     Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter
Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Who Decides What Madoff Victims Get? Picard or the Law?

Bernard Madoff Victims Get Support from US Congress

Fraud Magazine Honors Irving Picard

Will Madoff Trustee Irving Picard Pursue the SEC for Complicity in the Fraud?

Net Equity for Madoff Victims-Supported by Numerous Attorneys

BernardMadoffVictims Coalition Seeks Congressional Intervention To Ensure SEC Follows the Law

To View Comments or Join the Conversation:

Tell A Friend