SEC IG on Madoff: Major FAIL
The Securities and Exchange Commission (SEC) Office of Inspector General (OIG) has found that the SEC recieved “ample information in the form of detailed and substantive complaints over the years to warrant” an investigation of Bernard Madoff’s Ponzi scheme, but that “a thorough and competent investigation or examination was never performed.”
The executive summary on Case No. OIG-509, posted here, is a thorough indictment of the SEC’s ability to carry out its mission. It remains to be seen how, or even IF, the commission can be reformed.