PracticeAuditMadoff could have been caught 17 years ago

Madoff could have been caught 17 years ago

Basic checks could have uncovered Madoff

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

Related Articles

FRC closes investigation into PwC over Tesco accounts

Accounting Firms FRC closes investigation into PwC over Tesco accounts

6m Alia Shoaib, Reporter
Tesco reports 55% profit slump amid hint of SFO deal

Audit Tesco reports 55% profit slump amid hint of SFO deal

2y Chris Warmoll, Writer
EY's US arm to pay $10m to settle a NY lawsuit over Lehman audit

Audit EY's US arm to pay $10m to settle a NY lawsuit over Lehman audit

3y Chris Warmoll, Writer
Auditor concern raised over Birmingham City missing funds

Audit Auditor concern raised over Birmingham City missing funds

3y Kevin Reed, Writer
Internal auditors must up game over new anti-corruption rules

Audit Internal auditors must up game over new anti-corruption rules

3y Chris Stewart-Smith
Audit Commission reveals highest ever levels of council fraud detection

Audit Audit Commission reveals highest ever levels of council fraud detection

3y Chris Warmoll, Writer
East India Club reviews processes after £500k fraud

Audit East India Club reviews processes after £500k fraud

3y Kevin Reed, Writer
Deloitte dismisses HP claim plans as 'utterly without merit'

Accounting Firms Deloitte dismisses HP claim plans as 'utterly without merit'

3y Richard Crump, Writer