Skip to main content
HR 5032 111th Congress House

Ponzi Scheme Investor Protection Act of 2010

Official title: 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.

Introduced: June 30, 2010 See on congress.gov
Finance and Financial Sector Administrative law and regulatory proceduresAdministrative remediesBankruptcyFinancial services and investments
More subjectsShow fewer subjects
Fraud offenses and financial crimesGovernment corporations and government-sponsored enterprisesGovernment trust fundsSecuritiesUser charges and fees
Sign in to write a letter Sign in to watch
This bill died when the 111th Congress ended
It never became law before the 111th Congress (2009–2010) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 2 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Apr 15, 2010
Referred to the House Committee on Financial Services.
Apr 15, 2010
Introduced in House
 Ask about this bill AI · grounded in the bill text

Have a question about what this bill does? Ask in plain English; the answer is drawn from the bill's actual text and official record, and it'll tell you when something isn't in the text rather than guess.

AI answers can be imperfect; always confirm against the full bill text.

 Latest action April 15, 2010

Referred to the House Committee on Financial Services.

 Plain-English summary Congressional Research Service

Ponzi Scheme Investor Protection Act of 2010 - Amends the Securities Investor Protection Act of 1970 with respect to the duties of a trustee appointed for a Securities and Exchange Commission (SEC)-registered broker or dealer undergoing liquidation.

Instructs the trustee to take specified actions if the trustee determines that the debtor is a Ponzi scheme.

Establishes procedures for an indirect Ponzi scheme investor to file a claim.

Instructs the trustee to: (1) coordinate with Ponzi scheme investors to ensure proper payments to indirect Ponzi scheme investors; and (2) take specified actions to pay indirect Ponzi scheme investors.

Prescribes the maximum aggregate amount of all cash and securities that may be awarded to each indirect Ponzi scheme investor.

Prohibits the trustee of a Ponzi scheme from seeking to recover money and profits from any Ponzi scheme investor unless such investor's participation in the Ponzi scheme was either complicit or negligent.

Requires the Securities Investor Protection Corporation (SIPC) to: (1) advance to the trustee such moneys as may be required to pay claims and implement this Act; and (2) promulgate regulations modifying SIPC Fund assessment levels to ensure they are adequate to cover the anticipated costs of implementing this Act.

 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
 Cosponsors 11
All 11 Democratic 5
D
Cohen, Steve
Tennessee · Aug 10, 2010
McMahon, Michael
· Aug 10, 2010
Nye, Glenn
· Aug 10, 2010
 D
Green, Al
Texas · Jul 20, 2010
 D
McGovern, James P.
Massachusetts · Jun 30, 2010
 D
Himes, James A.
Connecticut · May 26, 2010
Hall, John
· Apr 21, 2010
Hodes, Paul
· Apr 20, 2010
 D
Thompson, Bennie G.
Mississippi · Apr 20, 2010
Klein, Ron
· Apr 15, 2010
Maffei, Daniel
· Apr 15, 2010
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 5032: Ponzi Scheme Investor Protection Act of 2010. 111th Congress. Open America. https://openamerica.io/bill/111-HR-5032/
MLA
"H.R. 5032: Ponzi Scheme Investor Protection Act of 2010." 111th Congress, 2026, Open America, https://openamerica.io/bill/111-HR-5032/.
Bluebook (legal)
H.R. 5032, 111th Cong. (2026), https://openamerica.io/bill/111-HR-5032/.
Markdown link
[H.R. 5032: Ponzi Scheme Investor Protection Act of 2010](https://openamerica.io/bill/111-HR-5032/)
Report a problem