Judge May Offer Protection to Madoff Investors

New York, NY —

The judge presiding over civil claims against disgraced financier Bernard Madoff says he may be willing to offer protection to Madoff's investors from the Securities Investor Protection Corporation.

The SIPC, created by Congress and funded by the securities industry, can give customers up to half a million dollars each, if it determines their money was stolen.

U.S. District Judge Louis Stanton says he will consider extending SIPC protection even to investors who didn't invest directly with Madoff, but whose money ended up with Madoff through other funds.

Judge Stanton says first he'll need a formal application and briefing from parties including the SIPC, the Securities and Exchange Commission, a trustee for Madoff's business and representatives of investors.

Madoff is accused of running a $50 billion Ponzi scheme.