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Thursday, September 3, 2009

Report highlights SEC's Madoff shortcomings

The Securities and Exchange Commission (SEC) missed numerous opportunities to uncover the $65 billion fraud conducted by Bernard Madoff, an investigation has found.

According to a report by the SEC's inspector general David Kotz, Madoff's actions were not discovered even though the body conducted five probes into his operations.

"Despite numerous credible and detailed complaints, the SEC never properly examined or investigated Madoff's trading," Mr Kotz said in a statement, adding that staff missed "inconsistencies" that could have led to Madoff's capture.

Chairman of the SEC Mary Schapiro admitted that the body should have handled its investigations into Madoff better, stating that the shortcomings are a "failure that we continue to regret".

Madoff, 71, was sentenced to 150 years in prison for orchestrating the Ponzi scheme.

Last month, his chief financial officer Frank DiPascali confessed to being involved in the crime by pleading guilty to ten charges, confirming suspicions that Madoff did not act alone.

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