Fraud Workouts & Bankruptcy

SIPA  (Securities Investor Protection Act): Special Procedures for Liquidation of Brokers

What are my rights if a broker I work with goes bankrupt?

The Securities Investor Protection Corporation or “SIPC” is a special quasi-governmental corporation designed to oversee the liquidation of brokers. In the event of the failure of a securities broker, SIPC has the power to commence liquidation proceedings, and is empowered to seek in the first instance to transfer your securities account to a different broker. This is a seamless transaction for a customer. If SIPC is not able to affect a transfer of accounts, then the statute allows for a claim for the value of reported cash and securities due a customer on the date of the filing of the liquidation, less any debt owed to the broker. SIPA insures the first $500K in each account. The statute requires SIPC to advance promptly to each customer up to $500K of the value of securities held (up to $250K in cash) once a claim is approved. As additional money in the liquidation of the broker becomes available, the trustee distributes it to all customers on a pro rata basis until each customer is paid in full, before reimbursing SIPC on account of its advances.

What is a SIPA liquidation?

Why is SIPA different from a regular bankruptcy

How do I file a claim in a SIPA case to get my money back?

When should I not file a claim? Are there risks in filing a claim?

Fraud Workouts & Bankruptcy

I am a small business. Can the small-business bankruptcy laws help me?

What are the benefits/hazards of the small business bankruptcy statute?

What are the costs of a small business bankruptcy?

What are our options as a "creditor" when a small business is late in making payments owed to us?"

I am a victim of a Ponzi scheme? What are my rights? Options?

I am a creditor who received payments from the debtor in the ordinary course of business; but a bankruptcy trustee demands repayment. What are my rights?

Does the government help victims of fraud?

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