As a fund entity investor, am I entitled to receive “bailout” funds from the U.S. government?
No. While recent news stories concerning the Bernard Madoff ponzi-scheme have concentrated on a federal judge’s order that investors seek relief from the Securities Investor Protection Corporation (“SIPC”), such relief is not available in this case. In order to submit a claim to the SIPC, an investor must have had an account with a member SIPC brokerage firm. Neither Plus Money, Inc. nor any of the other fund entities in receivership are SIPC members. In addition, neither Plus Money, Inc. nor any of the fund entities are “brokerage firms” as defined in connection with the SIPC. As a consequence, SIPC relief funds are unavailable to investors in this case.
