Pending Legislative Bills
H.R.5032
Title: Ponzi Scheme Investor Protection Act of 2010
Sponsor: Rep Gary Ackerman [D-NY5] (introduced 04/15/2010)
Summary: To amend the Securities Investor Protection Act of 1970 to provide insurance coverage for certain indirect investors caught in Ponzi schemes, and for other purposes.
H.R.5058
Title: To amend the Internal Revenue Code of 1986 to provide special rules for investments lost in a fraudulent Ponzi-type scheme.
Sponsor: Rep William Pascrell [D-NJ8] (introduced 4/15/2010)
S.3166
Title:Ponzi Scheme Victim’s Bill of Rights Act of 2010
Sponsor: Senator Schumer [NY-D] (introduced 3/25/2010)
Summary:
To amend the Internal Revenue Code of 1986 to provide tax relief for persons with investment losses due to fraud or embezzlement.
H.R.4173
Title: Derivative Markets Transparency and Accountability Act of 2009
Sponsor: Rep Frank, Barney [D-MA4] (introduced 12/02/2009)
Summary: An omnibus financial protection package that provides for a Consumer Financial Protection Agency, Derivatives regulation and investor protection. Incorporate various reforms proposed in HR3817, including enhanced audit procedures and standards of fiduciary conduct.
H.R.3817
Title: To amend the Internal Revenue Code of 1986 to provide special rules for investments lost in a fraudulent Ponzi-type scheme.
Sponsor: Rep Kanjorski, Paul [D-PA11] (introduced 10/15/2009)
H.R.2798
Title: Support Investment Protection for Customers Reform Act of 2009
To increase securities protection coverage in the event of stolen or missing assets, and for other purposes.
Sponsor: Rep Arcuri, Michael [D-NY-24] (introduced 6/10/2009)
Summary: most significant aspect of the bill is raising the cash protection from $100,000 to $250,000 (included in the Investor Protection Act of 2009)
H.R.1389
Title: To amend the Internal Revenue Code of 1986 to allow a refundable credit for taxes paid on earnings reinvested and lost in a fraudulent investment scheme.
Sponsor: Rep Ackerman, Gary L. [NY-5] (introduced 3/9/2009)
Summary: essentially extended NOL carryback period for schemes going back to December 1994 (14 years) and invested until December 2008.
H.R.1159
Title: To amend the Internal Revenue Code of 1986 to provide special rules for investments lost in a fraudulent Ponzi-type scheme.
Sponsor: Rep Meek, Kendrick B. [FL-17] (introduced 2/24/2009)
Summary: allows carry back period for net operating losses to be extended back 10 years (as compared to current Safe Harbor rules which limit carryback to 5 years). Also permits donors to increase contribution limits to charities that sustained Ponzi-losses. Also permits adjusting gift taxes for people who unwittingly gifted investments containing Ponzi investments.
The Honorable Judge Lifland has to date not issued one ruling favorable to Madoff clients, a.k.a. “victims”, who if anyone believes that he hearing on Tuesday, Februarly 2, will result in a more equitable decision? Bankruptcy court is for the trustee to reap large fees, there is no justice to be had there!
Is there any legislation pending to increase the number of years to receive taxes back on the fraudulent investments with Madoff. We were allowed 5 years but I had heard a while back that there was some discussion to allow 13 years. Since the SEC, SIPA, FINRA, IRS have now all admitted they were at fault in allowing this Ponzi scheme to go on for 20 years, one might think that the victims should get all their taxes back. If we can not retrieve additional taxes back then the IRS is as guilty of fraud as Madoff.
Agreed. This is something we have had on our to-do list for some time, but haven’t had the resources available to collate this information. Anyone out there willing to do the research and collect the contact information?????
Would be nice to have the email address for the Sponsors congressional aids so we can correspond with them.
Is there anything in the HR 2798 Support Investment Protection For Customer Reform Act 2009 that increases the max of $500,000 for securities lost or stolen…it seems the cash amount is increased from 100,000 to 250,000 so why wasn’t the securities payout of 500,000 increased?
Is there anything in legislation that would make this increase in SIPC pyout retroactive to pay madoff victims?