SEC Report: We Never Did 'Competent' Madoff Probe

By Harry Kimball,  Newser Staff
Posted Sep 2, 2009 2:19 PM CDT
Former SEC Chairman Christopher Cox testifies on Capitol Hill.   (AP Photo)
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(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."

Kotz’s report, eagerly awaited by legislators working to overhaul the regulatory system, mirrors conclusions reached far and wide. Former SEC chair Christopher Cox chastised his agency for not moving on “credible and specific allegations,” while whistleblower Harry Markopolos lambasted its “investigative ineptitude and financial illiteracy.” Kotz found no evidence that SEC higher-ups attempted to purposely stymie an investigation.