S.E.C. Bungled Multiple Madoff Investigations, Report Says

2 years ago

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Washington Reporter

The Securities and Exchange Commission consistently mishandled its investigations of Bernie Madoff despite warnings of multi-billion-dollar fraud. A report by the commission's internal watchdog concluded that three examinations and two investigations of Madoff's business were incompetent. But the report found no evidence that anyone in the SEC tried to improperly influence the investigations.

SEC examinations "almost immediately" caught Madoff in "lies and misrepresentations," but did not follow up on the inconsistencies and turned down whistleblowers' offers to provide more evidence, the report stated. The commission instigated two separate investigations of Madoff in two cities, but officials were unaware of each others' concerns. Chairman Mary L. Schapiro said that the agency has been examining its own practices and that changes made since January will prevent such mishandling in the future.

For details: "Report Says S.E.C. Fumbled Madoff Investigations" [Associated Press]

Filed Under: Breaking News, Scandal, Investigations

Tagged: bernie madoff, BernieMadoff, breaking news, BreakingNews, madoff, securities and exchange commission, SecuritiesAndExchangeCommission

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