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SEC 'mishandled' Madoff fraud crime investigations

Published on 3 Sep 2009 under category: legal

US officials mishandled several investigations into the actions of Bernard Madoff before his fraud crimes were revealed, it has been suggested.

The Securities and Exchange Commission (SEC) botched five probes over a period of 16 years into these matters, a report by its inspector general has stated.

It revealed that the group was made aware of Mr Madoff in 1992, although the extent of his fraud crimes was not unearthed until 2008, however, the study underlined that there was no evidence of ties between the financier and the group.

David Kotz, the SEC's inspector general, said: "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."

Earlier this year, Mr Madoff, a former non-executive NASDAQ chairman, was given a 150-year prison sentence for his involvement in multi-billion dollar fraud crimes.

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