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Garrett Introduces Legislation to Protect Investors Already Defrauded by Bernie

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Flag Requests WASHINGTON, December 17, 2010 - Rep. Scott Garrett (R-NJ), incoming Chairman of the House Financial
Services Capital Markets and Government-Sponsored Enterprises Subcommittee, has introduced H.R. 6531, the
Grant Information Equitable Treatment of Investors Act, to protect ordinary investors who have already been defrauded and financially
devastated by Bernie Maddoff from further “clawbacks” by the Securities Investor Protection Corporation (SIPC)
Garrett issued the following statement after introducing the bill in the House:

Academy Nominations “When investors see the SIPC seal of approval, they should have confidence in the account statements they
receive. These ordinary investors who knew nothing about the fraud should not be held to a higher standard than
the federal government – which in the case of the Securities and Exchange Commission (SEC) missed the Madoff
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fraud in the first place, and in the case of the Internal Revenue Service (IRS) was happy to rely on these same
statements to collect taxes from the reported profits.
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“Customers of registered brokers regulated by the SEC are legally entitled to rely on their customer statements as
evidence of what their broker owes them – this does not change when a broker engages in fraud. Indeed, it is there
to protect customers in the event of fraud. Since customers dealing with brokers do not hold physical securities,
there is no other way for customers to verify their holdings.

“I am concerned that the trustee in the Madoff case is ignoring this law and failing to provide prompt assistance to
those who have been thrust into financial chaos. He is taking positions on a wide range of issues that are contrary
RC# Bill Vote to the Securities Investor Protection Act (SIPA), the Bankruptcy Code, and federal and state laws that are intended
to protect investors against bad acts on the part of their brokers. This legislation is intended to clarify for the trustee
663 H R 6547 Nay and the Bankruptcy Court that Congress wants these laws to be followed.

662 H R 3082 Nay “If the current law is not followed, no customer can ever have confidence in his or her dealings with a broker. That
is contrary to the policy goal of encouraging investment, which is critical to the economic renewal our country
661 H R 2751 Nay needs.”

660 H R 2142 Nay ###

Print version of this document
659 H R 5116 Nay

658 H R 6540 Nay

657 H Res 1771 Nay

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