New facts have been unearthed in the ongoing investigation into how the SEC missed the biggest Ponzi scheme in history:
ABC News: A top Securities and Exchange Commission compliance official who worked for the SEC when it found no problems at Bernard Madoff’s firm in 2005, later began to date and married Madoff’s niece, who was a compliance lawyer for the company.
A spokesman for Eric Swanson, who has since left the SEC, said Swanson “did not participate in any inquiry of Bernard Madoff Securities or its affiliates while involved in a relationship” with Shana Madoff.
“The Securities and Exchange Commission failed the American people,” said Senator Charles Grassley (R-IA).
Since 1992, the SEC has at least twice dismissed concerns about Madoff’s firm, following complaints.
At a business roundtable meeting last year, Madoff boasted of his “very close” relationship with a SEC regulator, chuckling as he said, “in fact, my niece even married one.”