Mukasey Steps Off Madoff Case

Prosecutors charge he violated bail by scattering assets

(NEWSER) - Accused Wall Street swindler Bernard Madoff is enjoying what could be his last hours of luxury inside his palatial $7 million New York apartment after prosecutors demanded his bail be revoked for sending some $1 million in jewelry to family and friends, Reuters reports. Madoff is due in court Thursday to hear whether a federal magistrate will revoke his $10 million bail. Prosecutors say he sent the jewelry so it could not be seized for restitution, in violation of a court order freezing his assets. More»

Congress questions watchdog's ability to keep up with fraud

(NEWSER) - Congress begins a probe today into why federal regulators who examined Bernie Madoff's investments eight times in 16 years failed to sniff out his decades-long $50 billion Ponzi scheme. Among those in the hot seat is Barack Obama's appointee for SEC chair. Mary Schapiro was involved in several of the fruitless investigations, reports the Wall Street Journal. More»

Eight employees got disciplined, however

(NEWSER) - SEC staffers managed to miss Bernie Madoff's Ponzi scheme for more than a decade despite numerous warnings, but that is apparently not a fireable offense. The agency disciplined eight employees involved in the case, with the most severe punishment being a 30-day suspension coupled with a demotion, reports the Washington Post . The others got a range of lesser penalties, including pay cuts and, in one case, only a "counseling memo." More»

Maybe that's why SEC was 'asleep at the swtich,' says critic

(NEWSER) - The mother of the chief lawyer for the Securities and Exchange Commission reaped $1.5 million in dirty money from Bernie Madoff, court documents are revealing. Attorney David Becker has been named in a clawback lawsuit seeking funds to repay investors ripped off in Madoff's $65 billion Ponzi scheme. The apparent conflict of interest involving Becker raises troubling questions about the SEC's failure to stop Madoff earlier, despite a raft of warnings, notes the New York Daily News . "If families of high-ranking SEC officials were heavily invested in Madoff it may help explain why the SEC was less than vigilant in scrutinizing his activities," said a former federal prosecutor. "We know they were asleep at the switch." More»

(NEWSER) - The SEC's inspector general says the agency had plenty of chances to take down Bernie Madoff and whiffed on every one, Bloomberg reports. In a report released today, H. David Kotz writes that the SEC received "detailed and substantive complaints over the years to warrant a thorough and comprehensive examination” of Madoff. And yet it never performed a "competent investigation or examination." More»