Madoff could have been caught 17 years ago

The US regulator could have stopped Bernard Madoff’s £65 billion Ponzi scheme 17 years ago according to a scathing internal report.

An investigation of events leading up to Madoff’s eventual capture and conviction found the US Secutiries and Exchange Commission had “ample information in the form of detailed and substantive complaints”.

The report, by the US Office of Inspector General, details a long list of red flags which where missed by authorities, dating back to June 1992. Each of which had the potential to expose Madoff if properly investigated.

“Despite numerous credible and detailed complaints, the SEC never properly examined or investigated Madoff’s trading and never took the necessary, but basic, steps to determine if Madoff was operating a Ponzi scheme,” the report stated.

SEC chairman Mary Schapiro said had been reviewing internal practices in the wake of the Madoff scandal, since she took office in January.

“Since becoming chairman, I have been impressed by the expertise and dedication of the men and women at the SEC and their willingness to embrace the changes that we have undertaken to better protect investors,” she said.

Read Mary Schapiro's full speech: Statement on the Release of the Executive Summary of the Inspector General's Report Regarding the Bernard Madoff Fraud