SEC starts immediate internal probe into Madoff fraud
SEC will start an internal probe immediately into why it failed to pursue credible allegations against Madoff's Ponzi sheme
The
Securities
and Exchange Commission (SEC) said yesterday it would immediately open an
internal investigation to find out why it failed to follow through on repeated
warning signs over at least nine years about what has been described as Wall
Street’s biggest fraud ever.
Christopher Cox, SEC chairman, said the commission’s initial findings were
‘deeply troubling’ because SEC had received ‘credible and specific allegations’
regarding Madoff’s financial wrongdoing, but failed to respond aggressively.
‘I am gravely concerned by the apparent multiple failures over at least a
decade to thoroughly investigate these allegations or at any point to seek
formal authority to pursue them,’ he said.
In addition, the commission will investigate ‘all staff contact and
relationships with the Madoff family and firm, and their impact, if any, on
decisions by staff regarding the firm.’
Further reading:
Madoff’s $50bn fraud sends shockwaves worldwide