Madoff: All SEC Did Before 2006 a 'Waste of Time'

[sabra]

Source: CNBC

Newly released documents in the Bernard Madoff case paint a detailed picture of a feckless Securities and Exchange Commission, and an epic scam artist who was constantly amazed he did not get caught.

The documents, released Friday by the SEC following an August request by CNBC under the Freedom of Information Act, include thousands of pages of e-mails, transcripts and internal SEC documents compiled by Inspector General H. David Kotz in his investigation of the SEC's handling of the case. Kotz issued a scathing report in September citing multiple lapses by the SEC in investigations dating back to 1992.

While Madoff's Scam of the Century shocked the world, it appears Madoff was mainly shocked he got away with it so long, according to a jailhouse interview he gave to Kotz on June 17 as he awaited sentencing on 11 fraud counts. In the interview, Madoff says the fact that he did not get caught was "amazing to me." Madoff was not under oath in the interview.

"It never entered the SEC's mind that it was a Ponzi scheme," Madoff says, noting that all investigators would have had to do was contact his supposed counterparties, and they "would've seen it."

Read more: http://www.cnbc.com/id/33590661

[gratuitous]

1. Shocked at investigators' ineptitude

But not so shocked as to, you know, stop breaking the law in such a profitable fashion. I'm sure the people and foundations who lost their investments will join you in a hearty "ho, ho, ho" at the expense of George W. Bush's SEC. Then they can all have a fabulous boot party with your testicles as the guests of honor.

[Warpy]

2. This went so far beyond incompetence it looks like collusion

but knowing another muzzy headed idealist who never thought any members of his class would ever consider doing anything illegal headed the Fed for over a decade, who knows?

In any case, Cox needs to have his butt stuck to a chair in front of a Congressional committee to find out what the hell was going on at the SEC for all those years, with Madoff's scheme being dropped into their laps with everything they needed to convict the SOB and nothing being done. My guess is that he was being ordered to lay off and I want to know who issued those orders.

All the people and charities Madoff ripped off deserve an answer.

[DontTreadOnMe]

3. Exactly!

The SEC was TOLD to lay off... let it happen.

[Raster]

4. I work in the financial industry--a major filing agent--and interface with the SEC everyday...

...I concur. "In any case, Cox needs to have his butt stuck to a chair in front of a Congressional committee to find out what the hell was going on at the SEC for all those years, with Madoff's scheme being dropped into their laps with everything they needed to convict the SOB and nothing being done. My guess is that he was being ordered to lay off and I want to know who issued those orders."

I'm sorry. Someone at the SEC knew something.

[Skink]

5. This is the same guy who chaired the NASDAQ right?

[pjt7]

6. guilty folks from the sec

should be banned fron the regulatory industry.. at a minimum

[Mr. Sparkle]

7. I would like point out that the head of the SEC was included in this scam as well.

June 3, 2005 (Associated Press) -- President Bush chose California Rep. Christopher Cox on Thursday to run the Securities and Exchange Commission, assigning him the delicate regulatory dance of protecting investors' rights while not stifling business.

Cox, a conservative 16-year veteran of the House, would replace William Donaldson, a Republican who turned out to be a firm regulator and often clashed with GOP business allies during his 2 1/2 years at the helm.

The White House announcement came one day after Donaldson, 74, said he would leave at the end of this month.

Business groups, which view some SEC regulations as overly burdensome and would like to see them loosened or overturned, welcomed Bush's pick. Advocates for individual investors voiced concerns that Cox might do just as business hopes.

http://accounting.smartpros.com/x48478.xml

Anyone who watches Air Emergency on National Geographic realize that accidents don't just happen by themselves. There is usually a long sequence of events leading up to a crash where every fail safe is negated. In this case, The "regulator" was not a regulator, all the protocols put in place to catch these scams were basically, not in effect. Imho, Christopher Cox is a recklessly dangerous at best, and at worst , co conspirator.

The SOB should have to face life in Jail ! their was nothing accidental about his actions.

[fascisthunter]

8. this government helped in fucking over tax payers

Madoff was expendable casualty. This government deregulated the shit out of this country so criminals like him could do as he did. And he certainly isn't the only corrupt scumbag out there.

[Octafish]

9. Sure was no accident. Phil Gramm - Cough BFEE

Know your BFEE: Goldmine Sacked or The Best Way to Rob a Bank Is to Own One

Know your BFEE: Phil Gramm, the Meyer Lansky of the War Party, Set-Up the Biggest Bank Heist Ever.

When two or more people work together on a crime, it's called "conspiracy." It's almost impossible to rip off the U.S. banking system alone. So...

[The Backlash Cometh]

10. There's power in numbers.

I remember seeing a video of him sitting around with a bunch of like-minded jackals, rolling their eyes at the regulatory powers of the SEC, as if it was an antiquated agency.

[SOS]

11. Was fear a factor?

Madoff was laundering money for the most dangerous criminals on earth.
Maybe the SEC investigators scratched the surface, realized what was going on and quickly closed the case?

From House testimony:

“Mr. Madoff was running such a large scheme and he had a lot of dirty money,” Markopolos testified. “Let me describe dirty money to you. When you’re that big and you’re that secretive, you’re going to attract a lot of organized crime money, which we now know came from the Russian mob and the Latin American drug cartel."
Markopolos switched course to address his own fears of being murdered if Madoff learned of his investigation:
“If he would’ve known my name and knew he had a team tracking him, I didn’t think I was long for this world."