The SEC has an excuse for why it missed the Madoff fraud all those times it examined him. He lied to them. If only The Ponz had been more forthright and honest about his shady dealings, the agency might’ve nipped this whole thing in the bud.
SEC enforcement chief Linda Thompson testified before the Senate yesterday:
WSJ: Ms. Thomsen declined multiple times to comment specifically on the SEC investigation or its past examinations of Mr. Madoff’s firm, citing the current inquiry.
“We want to be sure to preserve the integrity of any criminal investigation,” she told the committee. She said that “some of the conduct in the prior investigation may itself have amounted to crimes,” such as “violations of perjury” laws.
If for some reason they can’t nail him on the self-admitted fraud, prosecutors can at least fall back on this.
Was Ruth The Top Madoff Bookkeeper?
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