SEC Report: We Never Did 'Competent' Madoff Probe

By Harry Kimball, Newser Staff

Posted Sep 2, 2009 2:19 PM CDT

(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.

Former SEC Chairman Christopher Cox testifies on Capitol Hill. (AP Photo)

Bernard Madoff. (AP Photo)

Securities and Exchange Commission (SEC) Inspector General H. David Kotz. (AP Photo)

SEC Chair Mary Schapiro testifies on Capitol Hill. (AP Photo)

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SEC Report: We Never Did 'Competent' Madoff Probe

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OTHER STORIES ON OUR RADAR

SEC • Christopher Cox • Ponzi scheme • Inspector General • Bernard Madoff • Mary Schapiro • Harry Markopolos • Securities and Exchange Commission • regulatory body • H. David Kotz

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

SEC Not Firing Anyone for Missing Madoff's Scheme

Eight employees got disciplined, however

SEC Lawyer Linked to $1.5M in Dirty Madoff Money

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

Amish Man Accused of Running Ponzi Scheme

Monroe Beachy claims it was 'not intentional'

Watchdog: SEC Sued Goldman to Bury Ponzi Probe

SEC official quashed Stanford probe then sought to represent him

Lloyd Blankfein: Fraud Case Will 'Hurt America'

Goldman Sachs CEO rails against SEC in call to clients

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