8/8/2019 Garrett Press Release 12-17-2010

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PRESS RELEASE

WASHINGTON, December 17, 2010 -

Garrett Introduces Legislation to Protect Investors Already Defrauded by BernieMadoff

Rep. Scott Garrett (R-NJ), incoming Chairman of the House FinanciaServices Capital Markets and Government-Sponsored Enterprises Subcommittee, has introduced H.R. 6531, theEquitable Treatment of Investors Act, to protect ordinary investors who have already been defrauded and financiallydevastated by Bernie Maddoff from further clawbacks by the Securities Investor Protection Corporation (SIPCtrustee.

Garrett issued the following statement after introducing the bill in the House:

When investors see the SIPC seal of approval, they should have confidence in the account statements theyreceive. These ordinary investors who knew nothing about the f raud should not be held to a higher standard thanthe federal government which in the case of the Securities and Exchange Commission (SEC) missed the Madoffraud in the first place, and in the case of the Internal Revenue Service (IRS) was happy to rely on these samestatements to collect taxes from the reported profits.

Customers of registered brokers regulated by the SEC are legally entitled to rely on their customer statements asevidence of what their broker owes them this does not change when a broker engages in fraud. Indeed, it is thereto protect customers in the event of fraud. Since customers dealing with brokers do not hold physical securitiesthere 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 tothose who have been thrust into financial chaos. He is taking positions on a wide range of issues that are contraryto the Securities Investor Protection Act (SIPA), the Bankruptcy Code, and federal and state laws that are intendedto protect investors against bad acts on the part of their brokers. This legislation is intended to clarify for the trustee

and the Bankruptcy Court that Congress wants these laws to be followed.

If the current law is not followed, no customer can ever have confidence in his or her dealings with a broker. Thais contrary to the policy goal of encouraging investment, which is critical to the economic renewal our countryneeds.

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RC# Bill Vote

663 H R 6547 Nay

662 H R 3082 Nay

661 H R 2751 Nay

660 H R 2142 Nay

659 H R 5116 Nay

658 H R 6540 Nay

657 H Res 1771 Nay

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