SEC never did ‘competent’ Madoff probe says internal watchdog report
The U.S. Securities and Exchange Commission never undertook a “thorough and competent” probe of Bernard Madoff amid at least six complaints that he was running a Ponzi scheme, the agency’s internal watchdog said.
But the report primarly blames inexperienced junior staff and says senior officials didn’t interfere with the inquiries. Well, they should have.
The report also notes that Madoff repeatedly intimidated SEC attorneys noting his relationships with the higher-ups at the agency even going so far as to say “that Madoff himself ‘was on the short list’ to be the next Chairman of the SEC.” However, when SEC attorneys reported Madoff’s repeated pushbacks to their superiors “they received no support.”
Presumably among those higher-ups was SEC Enforcement attorney Eric Swanson who later married Madoff’s niece.
Worse, the pretend regulators dropped off resumes with Madoff when they were supposed to be investigating him.
By sending the equivalent of a high school junior varsity football team up against Superbowl champions, the outcome was preordained.