Friday, September 11, 2009

Bernie Madoff and the Failure of the SEC

Lawmakers took the Securities and Exchange Commission to task Thursday for failing to prevent Bernard Madoff from perpetrating one of the largest financial frauds in U.S. history.
"Because the SEC failed to do its job, Madoff stole $50 billion," said Sen. Christopher Dodd, D-Conn., chairman of the Senate Banking Committee. "There can be no excuse for that colossal failure."

Dodd's remarks came at the beginning of the committee's second hearing to investigate the SEC's shortcomings in the Madoff case and how to improve the agency's performance in the future.

Madoff, 71, was convicted of operating a Ponzi scheme and defrauding thousands of investors. He pleaded guilty and was sentenced to 150 years in prison in June. Prosecutors have said it was the largest investor fraud ever committed by a single person.

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