Ponzi scheme investor that is recovered by the 
Ponzi scheme investor from the trustee. 
‘‘(3) ADVANCES BY SIPC.—With respect to pay-
ments made pursuant to this section, the trustee 
may satisfy claims out of moneys made available to 
the trustee by SIPC notwithstanding the fact that 
there has not been any showing or determination 
that there are sufficient funds of the Ponzi scheme 
available to satisfy such claims. 
‘‘(4) WAIVER.—By accepting any security or 
cash from the trustee under this section, the indirect 
Ponzi scheme investor agrees to waive the right to 
sue the Ponzi scheme investor with respect to such 
security or with respect to the security that was the 
basis for such cash payment. 
‘‘(5) SECURITY VALUATION.—For purposes of 
this subsection, the value of a security shall be 
deemed to be the amount listed for such security on 
the last statement the indirect Ponzi scheme investor 
received from the Ponzi scheme investor before the 
trustee determined the debtor was a Ponzi scheme 
pursuant to subsection (a). 
‘‘(e) PROHIBITION ON DOUBLE PAYMENTS.—Securi-
ties delivered pursuant to subsection (d), and securities, 
or percentages of securities, which were the basis for cash 
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paid pursuant to subsection (d), may not be the basis for 
any other payment by the trustee or SIPC under this Act. 
‘‘(f) RECOVERY OF FUNDS.—The trustee of a Ponzi 
scheme may not seek to recover money, including profits, 
from any investor in the Ponzi scheme unless such inves-
tor was either complicit or negligent in their participation 
in the Ponzi scheme. 
‘‘(g) NON-APPLICABILITY IF LAWSUIT FILED.—This 
section shall not apply to a claim filed by an indirect Ponzi 
scheme investor if such investor has filed a lawsuit against 
the Ponzi scheme investor, the Ponzi scheme, or the trust-
ee in connection with the securities that are the basis of 
such claim. 
‘‘(h) RETROACTIVE APPLICABILITY.—With respect to 
the appointment of a trustee made before the date of the 
enactment of this section, such trustee shall make the de-
termination required under subsection (a) not later than 
30 days after such date of enactment, and only if such 
trustee makes a determination that the debtor is a Ponzi 
scheme and customers invested more than $1,000,000,000 
in the Ponzi scheme. 
‘‘(i) INTEREST PAYMENTS.—If the Secretary of the 
Treasury makes a determination that claims under this 
section are not being considered in accordance with the 
timeline submitted to the Secretary under subsection 
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(a)(3), the Secretary may require any future payments 
made under this section to be made with interest. 
‘‘(j) RULEMAKING.—SIPC shall issue regulations to 
carry out the provisions of this section.’’. 
(b) SIPC AUTHORITY TO ADVANCE FUNDS.—Sec-
tion 9 of such Act (15 U.S.C. 78fff–3) is amended by add-
ing at the end the following new subsection: 
‘‘(d) ADVANCES RELATED TO PONZI SCHEMES.— 
SIPC shall advance to the trustee— 
‘‘(1) such moneys as may be required to pay 
claims made under section 8A; and 
‘‘(2) such moneys as may be required to carry 
out section 8A.’’. 
SEC. 3. SIPC FUND ASSESSMENT. 
Not later than the end of the 60-day period beginning 
on the date of the enactment of this Act, SIPC shall issue 
regulations to modify the SIPC Fund assessment levels 
to ensure they are adequate to cover the anticipated costs 
to the SIPC Fund of carrying out the amendments made 
by this Act. 
SEC. 4. DEFINITIONS. 
Section 16 of the Securities Investor Protection Act 
of 1970 (15 U.S.C. 78lll) is amended by adding at the 
end the following new paragraph: 
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