Stanford ponzi scheme victims to receive compensation

POSTED: Thursday, June 16, 2011 - 10:05am

UPDATED: Thursday, June 16, 2011 - 1:47pm

The Securities and Exchange Commission says Stanford victims deserve compensation.

Hundreds of Louisiana residents lost their life savings in 2009 when they became victims of a Ponzi scheme.

The SEC has decided to extend securities investor protection corporation coverage to those investors who were allegedly defrauded by the Stanford group.

Louisiana's congressional delegation was happy to hear the news. NBC33 heard from Congressman Bill Cassidy on the matter.

"Before they were being told that they couldn't get anything back now, they at least have the opportunity to receive some of those losses back,” stated Cassidy. “It's good for the victims, many of whom live in Louisiana."

Meanwhile, Senator David Vitter said he's dropping the hold he had put on President Obama's nomination of two new members to the SEC until this decision was made.

Allen Stanford, the head of the Ponzi scheme, is still awaiting trial.

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