What good is a blind watchdog?
Back in February, I told the tale of David Becker, former S.E.C. General Counsel, who had inherited money from his mother that was really the fruits of the Bernie Madoff investment scandal after he had served in the post while Madoff was merrily swindling people as the S.E.C. twiddled its thumbs. Becker apparently wasn’t in the information chain that should have led the S.E.C. to stop Madoff , and the scandal was uncovered after he left the agency. In 2009, after the Madoff mess had exploded, he rejoined the agency in his old job, but when it came to light that he and his brothers had inherited $2 million Madoff-manufactured profits from their mother, he quickly stepped down. My view was that Becker was a victim of circumstance: he had the appearance of impropriety, but hadn’t done anything wrong.
I should have known better: after all, this is the Securities and Exchange Commission, where they illegally shred files and the regulators look at porn all day. Now it is revealed that… Continue reading
"Iolanthe's" Lord Chancellor has nothing on me: his nightmare* was only "love unrequited." Mine is the SEC.
[ I read about the following outrage before going to bed last night, and vowed to write a post on it in the morning. It literally gave me nightmares and an upset stomach, so disrupting my repose that I gave up and headed to the keyboard. I am writing this at 4:30 AM. I have never written anything at 4:30 AM before, but I have learned something useful for future reference: I’m not in a good mood then.]
And here we have a prime example of why 1) many people don’t trust the Federal government and 2) why they are 100% right to feel this way.
I’ll take “Incompetence, Failure of Accountability and the Appearance of Impropriety” for a thousand, Alex!
SEC Inspector General H. David Kotz has issued a thorough report on the U.S. Securities and Exchange Commission, revealing that an employee who investigated Bernie Madoff in 2005 and 2006 and failed to notice that he was running a $50 billion Ponzi scheme was later rewarded by the agency with a cash bonus…for his fine work on the Madoff scandal after it was discovered, the lives ruined, the damage done. Continue reading