United States Second Circuit

In bankruptcy proceedings of two brokerage houses that were instrumentalities of a Ponzi scheme, district court's reversal of bankruptcy court's denial of claims under the Securities Investor Protection Act is reversed, as SIPA does not protect against all cases of alleged dishonesty and fraud.

Appellate Information

• Decided 09/07/2006
• Published 09/08/2006

Judges

• JACOBS, Circuit Judge., Before:  WALKER, Chief Judge, JACOBS, and WALLACE, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellees:
  
• James B. Kobak, Jr. (Christopher K. Kiplok, on the brief), Hughes Hubbard & Reed LLP, New York, NY, for Defendant-Appellant James W. Giddens as Trustee for the Liquidation of the Businesses of New Times Securities Services, Inc., and New Age Financial Services, Inc., Christopher H. Larosa, Assistant General Counsel (Josephine Wang, General Counsel, on the brief), Securities Investor Protection Corp., Washington, DC, for Defendant-Appellant Securities Investor Protection Corp., May Orenstein (Sigmund Wissner-Gross, on the brief), Brown, Rudnick, Berlack, Israels LLP, New York, NY, for Plaintiffs-Appellees.