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Levine, Noah

WilmerHale Attorneys File Amicus Brief to Affirm Ruling for Securities Investor Protection Corp. in Case of First Impression

April 24, 2013

A team of WilmerHale attorneys recently filed an amicus brief in the DC Circuit requesting that the court affirm a district court decision in favor of the Securities Investor Protection Corp. (SIPC). WilmerHale Partner Noah Levine, former Counsel Steven P. Lehotsky, Senior Associate Joshua S. Press and Associate Albinas J. Prizgintas filed the brief on behalf of former Securities and Exchange Commission (SEC) officials and professors of law in SEC v. SIPC, a case of first impression under the Securities Investor Protection Act (SIPA) arising out of Robert Allen Stanford’s Ponzi scheme.

Law360 published news about the amicus brief in an April 23, 2013, article titled, “Stanford Victims Aren’t Owed SIPC Aid, Ex-SEC Chiefs Say.”

The article highlights excerpts from the brief stating, “[t]he SEC’s proposed expansion of SIPC protection, absent even the most rudimentary consideration of any financial consequences, would radically transform SIPA and threaten SIPC’s ability to function as Congress intended.”

The brief argues, among other things, that SIPC does not have authority to provide financial relief to investors who deposited funds with and received certificates of deposit from a foreign bank that was neither subject to SIPA nor a SIPC member.