Madoff trustee Irving Picard will file massive lawsuits against Madoff’s sons and brother saying as officers of the companies, they should have known about the fraud and if the civil suit bankrupts them, oh well.
More than anything, the loss of corporate funding is what will cause ACORN to cease to exist. After the recent revelations, no one is charge of charitable contributions at a company will even try to defend ACORN to their board.
SEC Inspector General H. David Kotz, who reviewed the agency’s Madoff probes for eight months, said he might propose that staff be required to verify random samples of trading data to ensure money managers are conducting transactions. SEC managers also should assign employees with “appropriate skills and expertise” to exams, Kotz said today in testimony for the Senate Banking Committee.
Tragically, this is not biting satire. It should be. After all, random sampling of data is a standard accounting audit practice. And assigning people with the proper skills to do the job should be a given. But apparently such practices were never implemented at the SEC, who now views them as being cutting edge and bold. Which is just pathetic.
Here’s what I’d like to see. Everyone involved with the SEC investigation of Madoff has their financial records and bank accounts examined to see if any of them profited personally from their stupendous and studied incompetence in investigating Madoff. This would include where they went to work after the SEC, if they changed jobs.
For Inspector Klutz to propose the obvious as a cure for what should have been done in the first place only demonstrates that he too is incompetent.
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.
It’s expected to be made public by the end of the week.
I suspect this translates to “Let’s dump it at 4 pm on Friday before a big three day weekend and hope no one notices it.” Heh. Seriously though, let’s hope it is substantive and not a cover up or whitewash.
Now go check Simon’s fine blog, which I just added to my feed reader
Simon Owens is a 25-year-old social media consultant and online journalist who writes regularly for PBS’s Media Shift. He is a former newspaper journalist and currently lives in the Washington, DC area.
Bloggasm was launched in late 2005 and focuses on the intersection of new and old media.
I mean, Lordy folks, The NY Post quoted unnamed sources quoting inmates who say Madoff told them he has cancer, and they didn’t even ask the prison for confirmation. This is just garbage journalism. Let me spell it out. Bernie Madoff lied to everyone for decades. Inmates in prisons have been known to fib a time or two themselves. Yet the original bogus story went everywhere with no one apparently thinking they might have been gamed.