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SEC’s Stanford Ponzi Ruling Provokes Clash With Investor Fund

When regulators froze R. Allen Stanford’s assets two years ago and accused him of running a $7 billion Ponzi scheme, some 20,000 investors were left wondering if they’d ever get their money back.

Now the Securities and Exchange Commission and a federally chartered investor protection group are clashing over whether Stanford’s clients should be as eligible for payments as the victims of Bernard Madoff. The dispute highlights how the rules can get murky when politics collides with securities law.