Some Madoff Victims May Get SIPC Rescue Soon

It’s still not clear that Bernie Madoff’s swindle constitutes a “theft of securities” from a registered brokerage account, but for Madoff victims there’s a glimmer of hope:

WSJ: Irving Picard, the court-appointed trustee of the Madoff firm who is locating assets for distribution to investors, on Tuesday said some investors may get cash advances from the Securities Investor Protection Corp. well before March 4, the first deadline for claims to be filed. SIPC, a securities-industry group formed by Congress to help customers of failed brokerages, can advance as much as $500,000 per customer for theft of securities from a brokerage.

See Also: Madoff Ends Ponzi By Fleecing BFF Carl Shapiro

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