A group of plaintiffs’ attorneys, the Public Investors Arbitration Bar Association, is calling for an investigation of the use of a fund created to reimburse investors if their brokerage firms go bankrupt.
The lawyers claim that the fund’s managing group, the Securities Investor Protection Corp. (SIPC), and its trustees arbitrarily prevent customers of insolvent brokerage firms from recouping their losses. The lawyers’ also charge that the decisions of SIPC trustees are driven by their own financial interests, not those of investors.
