Reply #12: it's my understanding the investors did not have sipc protection

[pitohui]

hedge funds are not covered by the sipc, it doesn't sound like the sipc is going to be reimbursing any of these investors, rather, they are assisting in the investigation to see what money remains and what pro rata share the investors may be getting back, if anything

what am i missing?

do you think the gov't should not provide any assistance at all in tracking down the money and returning it to the victims?

i know some victims of a similar scam (not so large, of course) a few years back, busted by the fbi, the sipc did not provide any insurance coverage and the victims didn't receive back a penny -- the scamster himself committed suicide before the case when to trial -- the money was gone -- the sipc did NOT reimburse anyone

i think the sad stories coming out are coming out because the stories are sad...not because some charity once worth millions "might" get back $500K from the sipc (which despite this writer's claims i doubt they'll get back a penny unless i'm missing something)

always happy to be corrected if i'm wrong but i THINK this essay is likely wrong