BREAKING NEWS: OIG Slams SEC For Failing To Discover Madoff Scheme
Since Bernard Madoff's fraud came to light last year, the Securities and Exchange Commission's Office of Inspector General has been investigating why the agency failed to detect it. The OIG report now makes it clear that the SEC missed numerous opportunities to discover the fraud.
The OIG investigation found that the SEC received more than ample information in the form of detailed and substantive complaints over the years to warrant a thorough and comprehensive examination and/or investigation of Madoff and his company for operating a Ponzi scheme, and that despite three examinations and two investigations being conducted, a thorough and competent investigation or examination was never performed.
The OIG found that between June 1992 and December 2008 when Madoff confessed, the SEC received at least six substantive complaints that raised significant red flags concerning Madoff’s hedge fund operations and that should have led to questions about whether Madoff was actually engaged in trading.
Finally, the SEC was also aware of two articles regarding Madoff’s investment operations that appeared in reputable publications in 2001 and questioned Madoff's unusually consistent returns.
More to follow.....
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