H.R.5032 - Ponzi Scheme Investor Protection Act of 2010111th Congress (2009-2010)
|Sponsor:||Rep. Ackerman, Gary L. [D-NY-5] (Introduced 04/15/2010)|
|Committees:||House - Financial Services|
|Latest Action:||04/15/2010 Referred to the House Committee on Financial Services. (All Actions)|
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Summary: H.R.5032 — 111th Congress (2009-2010)All Information (Except Text)
Introduced in House (04/15/2010)
Ponzi Scheme Investor Protection Act of 2010 - Amends the Securities Investor Protection Act of 1970 with respect to the duties of a trustee appointed for a Securities and Exchange Commission (SEC)-registered broker or dealer undergoing liquidation.
Instructs the trustee to take specified actions if the trustee determines that the debtor is a Ponzi scheme.
Establishes procedures for an indirect Ponzi scheme investor to file a claim.
Instructs the trustee to: (1) coordinate with Ponzi scheme investors to ensure proper payments to indirect Ponzi scheme investors; and (2) take specified actions to pay indirect Ponzi scheme investors.
Prescribes the maximum aggregate amount of all cash and securities that may be awarded to each indirect Ponzi scheme investor.
Prohibits the trustee of a Ponzi scheme from seeking to recover money and profits from any Ponzi scheme investor unless such investor's participation in the Ponzi scheme was either complicit or negligent.
Requires the Securities Investor Protection Corporation (SIPC) to: (1) advance to the trustee such moneys as may be required to pay claims and implement this Act; and (2) promulgate regulations modifying SIPC Fund assessment levels to ensure they are adequate to cover the anticipated costs of implementing this Act.