Securities Investor Protection Corp. v. Pepperdine University

KOZINSKI, Circuit Judge:

This case is about a securities broker-dealer that went bankrupt and some disappointed investors. We consider whether these investors are protected by the Securities Investor Protection Act (SIPA), 15 U.S.C. §§ 78aaa-78III, and are thus entitled to payments from the insurance fund maintained by the Securities Investor Protection Corporation (SIPC).

I

Brentwood Securities, Inc. was a securities broker-dealer founded in 1976 and registered with the Securities and Exchange Commission. Its office was located in Los Angeles, California. Prior to November 1981, Brentwood was…