Cochran questions nominee regarding Stanford ponzi scheme

U.S. Sen. Thad Cochran (R-Miss.) has asked the acting chair of the agency that denied compensation to Stanford ponzi scheme victims to explain those actions.

Cochran, ranking member on the Senate Agriculture Committee, has submitted questions regarding the Stanford case to Sharon Y. Bowen, the acting chair of the Securities Investor Protection Corporation (SIPC). Bowen, nominated for a seat on the Commodity Futures Trading Commission (CFTC), appeared with two other CFTC nominees at a confirmation hearing last week before the Agriculture Committee.

“The Commodity Futures Trading Commission is an important part of the regulatory framework that protects American farmers, ranchers and businesses, which depend on it to ensure sound markets,” Cochran said. “To that end, I want to know how potential members of the Commission view their role in managing abuses that lead to investor losses or dealing with situations like the Stanford ponzi scheme that harmed investors in Mississippi and many other states.”

In questions submitted to Bowen, Cochran asked the nominee to describe her involvement in the decision by SIPC to deny compensation to the more than 7,000 victims from 46 states, including Mississippi, who lost more than $7.0 billion in the Stanford ponzi scheme.

MS Business Journal
3/11/14