SIPC is a quasi-governmental agency under the supervision of the SEC and Congress. The SEC’s job is to protect investors. A unique provision to SIPC allows a SIPC appointed Trustee to retain their former law firm. This practice is not permitted in other bankruptcy proceedings due to the apparent conflicts. Stephen Snyder, the appointed Trustee, hired his former law firm Holmes, Roberts and Owen (“HRO”). The SIPC Trustee through his attorneys(HRO)in 1994, unleashed a wrath of litigation against Rounds others which lasted more than 15 years at a cost to SIPC of an estimated $15 million in legal, trustee and other fees. It resulted in over $44 million in uncollectable judgments against Rounds and others.
Next Page