The many fruitless probes into Bernie Madoff

Mon Jan 5, 2009 4:08 PM EST

politics, madoff, bernard-madoff, regulators

Starting in 1992, federal regulators on many occasions examined various aspects of Bernard Madoff's business operations, but they never turned up the alleged $50 billion Ponzi scheme that led to Madoff's arrest last month. The history of regulatory failure in the Madoff scandal:

1992

Securities and Exchange Commission

Madoff's name comes up in a probe of Florida accountants who allegedly sold unregistered securities.

1999

SEC examiners review trading practices at Madoff's investment advisory firm.

2001

The SEC's Boston office receives information from securities industry executive Harry Markopolos raising questions about the steady stock market returns of Madoff's firm.

2004

The SEC looks into whether Madoff's firm engaged in improper trading practices.

2005

The SEC interviews Madoff and members of his family, finding no improper trading practices.

2005

An industry-based regulatory office finds no improper trading practices by Madoff's firm.

2005

SEC investigators meet with Markopolos, who alleges that Madoff's firm is "the world's largest Ponzi scheme."

2006

An SEC enforcement investigation finds that Madoff and one of his clients misled regulators. As a result, Madoff agrees to register as an investment adviser.

2007

The Financial Industry Regulatory Authority examines Madoff's firm. No regulatory action results.

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{"commentId":4682524,"authorDomain":"fromano"}

let the crime fit the punisment

.well it seems to me that 50 billion couldn't have vanished considering how many probes in to his practices by the sec has done over the years on him can only mean one thing PAYOFF In order to properly investigate what happen with the sce Their the problem they allowed him over the course of a few years to put the funds somewhere. I say skin him till he talks sorry if that plan bothers our libs out but that to much to misplace

{"commentId":4682524,"threadId":"461967","contentId":"2276625","authorDomain":"fromano"}

#1 - Tue Jan 6, 2009 10:06 AM EST

{"commentId":4694761,"authorDomain":"doylewheeler"}

Doyle Wheeler

yea I wonder how many federal regulators ended up retiring early with a few million bucks in their pocket.

{"commentId":4694761,"threadId":"461967","contentId":"2276625","authorDomain":"doylewheeler"}

#2 - Tue Jan 6, 2009 10:44 PM EST

{"commentId":4707804,"authorDomain":"fromano"}

let the crime fit the punisment

That seems about right it's hard to imagine having a million or two and not checking up on whats it doing. Many of the people said its their life savings

{"commentId":4707804,"threadId":"461967","contentId":"2276625","authorDomain":"fromano"}

#2.1 - Wed Jan 7, 2009 7:11 PM EST

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The many fruitless probes into Bernie Madoff

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NYC judge allows Madoff to remain free	Associated Press	Mon Jan 5	2
Congressmen sound off against SEC in Madoff affair	Associated Press	Mon Jan 5	3
Madoff victims selling memorabilia on eBay	Associated Press	Sun Jan 4	0
Madoff Chasers Dug for Years, to No Avail	Wall Street Journal	Mon Jan 5	4