Why the SEC Didn't Catch Madoff

Stock and Bond Fraud, including Boiler Rooms / Pump and Dump Schemes, Mutual Fund & Hedge Fund Fraud, FOREX scams, plus Churning, Private Placements, Venture and Bridge Funding, IPOs, Viaticals Fraud, HYIP and Prime Bank scams, MTNs, Historical Notes, Recovery Schemes, etc. Includes the Jim Norman Project and the Michael Dotson Project and similar HYIP scams.
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wserra
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Why the SEC Didn't Catch Madoff

Post by wserra »

http://www.washingtontimes.com/news/201 ... n-at-work/

As a friend of mine put it, the reporter who wrote this piece obviously never heard of the SEC's secret porn-investigation division, SECSEE.
"A wise man proportions belief to the evidence."
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Judge Roy Bean
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Re: Why the SEC Didn't Catch Madoff

Post by Judge Roy Bean »

CaptainKickback wrote:So if a company of ~3,000 can have its IT people do this, why can't the SEC or the federal government? Is it that they are lazy? Stupid? Both?
You might have overlooked the government contracting and procurement processes. :oops:
The Honorable Judge Roy Bean
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Brandybuck

Re: Why the SEC Didn't Catch Madoff

Post by Brandybuck »

Commenting on your title, the answer is simple. Perfect crime prevention does not exist. The assumption that the SEC can prevent all possible financial crime is wrong. It's like assuming the police can stop all murders. We don't have enough cops to police everyone's behavior 24 hours a day (and even if we could we would NOT want to). Ditto for the SEC. It simply does not have the manpower to pour over every financial document produced. Increasing its power every time a financial crime occurs is like giving the police more armaments every time a murder occurs: that eventually results in a police state.

The best defense remains an assumption of innocence and harsh punishment for those found guilty.
Demosthenes
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Re: Why the SEC Didn't Catch Madoff

Post by Demosthenes »

It simply does not have the manpower to pour over every financial document produced.
vs.
The work computer of one regional supervisor for the U.S. Securities and Exchange Commission showed more than 1,800 attempts to look up pornography in a 17-day span: "It was kind of distraction per se," he later told investigators.
Demo.
Brandybuck

Re: Why the SEC Didn't Catch Madoff

Post by Brandybuck »

The number of financial documents produced per microsecond dwarfs that 1800.

p.s. Of course, I am of the opinion that surfing the intertoobs for pr0n is a better use of my tax dollars than are the usual SEC functions.