SEC v. Securities Investor Protection Corporation. The SEC is suing SIPC.  The SEC is appealing a federal judge's ruling.  What's next - SEC Chairman Mary Schapiro versus CFTC Chairman Gary Gensler on 'Celebrity Deathmatch'? Is all this really necessary?  Monday's filing by the SEC in federal district court in District of Columbia seeks to compel SIPC to begin liquidation proceeding with regard to Stanford Group Company (SGC), a broker-dealer registered with the Commission and a SIPC-member brokerage firm. Nearly 3 years ago - in February 2009 - thte SEC brought a civil enforcement action against Robert Allen Stanford, SGC, and others, alleging that they operated a multi-billion dollar Ponzi scheme.  As a result of that enforcement action, a federal district court in Texas ordered that SGC be placed into receivership. In June 2011, the SEC directed SIPC to take steps to initiate a liquidation proceeding with regard to SGC, for accounts covered under the protections of the Securities Investor Protection Act of 1970 (SIPA).  Among other things, SIPA provides for coverage of up to $500,000 to customers of a defunct brokerage firm in the event that funds available at the firm are insufficient to satisfy claims covered by the statute. This coverage is provided from a fund maintained by SIPC.2009 To date, SIPC has not taken steps to initiate a liquidation proceeding as to SGC.   Accordingly, an application was filed with district court seeking an order compelling SIPC to do so. For further details, go to:   [SEC Litigation Release 22193, 12/15/11]   and  [SEC Memorandum of Points]