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SEC 'regrets' failing to detect Madoff fraud crimes

Published on 11 Sep 2009 under category: legal

The US financial watchdog has spoken out about the multi billion dollar fraud crimes of Bernard Madoff.

At a congress hearing, officials for the Securities and Exchange Commission (SEC) conveyed regret regarding its failure to uncover these offences.

In a joint statement on behalf of Robert Khuzami, the body's director of enforcement, and John Walsh, its acting director of exams and compliance, it was claimed that the experience had been "sobering and humbling".

It added: "We deeply regret our failure to detect the Madoff fraud and pledge to continue to fix the problems that contributed to this failure."

A recent report into these fraud crimes claimed that the SEC mishandled five investigations into Bernard Madoff over a 16-year period.

The former financier and non-executive NASDAQ chairman is now serving a 150-year prison sentence for his involvement in Ponzi scheme fraud crimes which are thought to have affected thousands of investors and were worth around $65 billion (£40 billion).

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