Open Cases

The following are open liquidation cases in which the six-month claims filing period is closed.

Global Arena Capital Corp.

TWS Financial, LLC

Westor Capital Group, Inc.

Bernard L. Madoff Investment Securities LLC

Lehman Brothers Inc.

North American Clearing, Inc.

Good Morning America Segment: Officials: Big Payout Coming for Most Madoff Victims

Is Your Stock Brokerage Account Safe? An Interview with SIPC President Steve Harbeck

Protecting Yourself Against Fraud

Learn about investment fraud, and where to turn for help.

Fraudulent Customer "Protection" Alert

Recent SIPC News

Friday, November 04, 2016

Madoff Trustee Reaches Recovery Agreement of Approximately $32 Million with Cohmad Securities Corporation, the Estate of Maurice “Sonny” Cohn, Marcia B. Cohn & Marilyn Cohn
$11.491 Billion Recovered for Madoff Victims to Date in BLMIS Liquidation

Friday, October 28, 2016

Madoff SIPA Trustee, California Attorney General, and Private Litigants Reach Recovery Agreement Valued in Excess of $277 Million with the Estate of Stanley Chais and Other Chais-Related Defendants
Immediate benefit to BLMIS Customer Fund Approximately $232 million

Thursday, June 30, 2016

Seventh Pro Rata Interim Distribution of Recovered Funds to Madoff Claims Holders Commences; Totals Approximately $190.2 Million
Aggregate Distributions Total Approximately $9.47 Billion

More SIPC News

Message from the Board of Directors

The Securities Investor Protection Corporation (SIPC) made substantial progress in each of its three major ongoing cases in 2015. Further, for the second consecutive year, SIPC was not called upon to initiate a new customer protection proceeding on behalf of investors in 2015.

Developments in Major Existing Cases

Lehman Brothers, Inc. is not only the largest brokerage firm failure in history; together with its parent company, it is the largest bankruptcy proceeding of any kind in history. Since the firm’s failure in September 2008, the SIPA Trustee James Giddens has recovered assets for nearly all Lehman customers and creditors.

  • Every one of the more than 111,000 Lehman customers with approved claims has gotten the contents of their securities accounts back, totaling more than $106 billion.

  • Every secured and priority creditor has had their assets returned, exceeding $250 million.

  • More than 97% of general creditors have had their assets returned, totaling more than $7,678,000,000 (or 35 cents on the dollar). Trustee Giddens continues to maintain court-approved reserves for all outstanding claims.

Bernard Madoff perpetrated the largest Ponzi Scheme in history. Seven years ago, when SIPC initiated a customer protection proceeding for Bernard L. Madoff Investment Securities LLC, that firm held only minimal assets for customers. Trustee Irving Picard has now amassed over $11 billion. Every dollar of those recovered funds will go directly to Madoff customers. Each customer with an allowed net claim of up to $1,163,000 has been fully satisfied as of the latest interim distribution. Customers who had investments over that amount will receive 57 percent of their allowed claims. We are optimistic that additional recoveries will be made for customers, as the Trustee continues to collect additional funds through settlements, and, where necessary, litigation. SIPC pays all of the considerable administrative expenses of the proceeding in order to maximize customers’ recoveries.

MF Global Inc. failed in October 2011. The collapse of that firm presented unique challenges for SIPC, given that the firm held substantial assets on behalf of both securities and commodities clients. In terms of assets under administration, the failure of MF Global and its parent company is the eighth largest bankruptcy in history. Trustee James Giddens has wound down the firm with exceptional results.

  • Every securities customer has received all of the securities that were custodied at the brokerage.

  • All commodities claimants have been satisfied in full.

  • General Creditors have received 95 cents on the dollar.

The Trustee closed this case in February, 2016.

In each of these three proceedings, Lehman Brothers, Madoff, and MF Global, the results for investors have exceeded any reasonable expectations that existed when those firms failed. We believe that the SIPA statute has met the challenges posed by the 2008 financial crisis, demonstrating the effectiveness of its customer protection framework under exceptionally difficult circumstances.

Other Cases

SIPC served as Trustee in the liquidation of Hudson Valley Capital Management beginning in 2012. SIPC initiated a Direct Payment Procedure for Take Charge Financial, Inc. in 2013. Both of those cases were closed in 2015. The use of SIPC personnel in a Trusteeship or Direct Payment Procedure streamlines the satisfaction of claims and permits a swift return of assets to customers in smaller brokerage firm failures.

Cooperation and Coordination with Regulators through FBIIC

SIPC is a member of the Financial and Banking Information Infrastructure Committee (“FBIIC”). FBIIC consists of 18 member organizations from across the financial regulatory community, both federal and state. Through monthly meetings, staff from FBIIC member organizations work on operational and tactical issues related to critical infrastructure matters, including cybersecurity, within the financial services industry.

Relocation of SIPC’s Office

In August 2015, SIPC moved its primary office for the first time in 28 years. The Corporation used this opportunity to update its physical and technical infrastructure to enhance efficiency, resiliency, and security, including the installation of dedicated work areas for those cases where SIPC serves as Trustee or uses the Direct Payment Procedure. The Board and staff believe these upgrades will help SIPC to better serve investors in 2016 and beyond.