9.2.2009 The SEC released the Executive Summary of the Inspector General’s report on why the agency failed to detect Bernard Madoff’s fraud. The Chairman stated that the Inspector General’s “report makes clear that the agency missed numerous opportunities to discover the fraud.” Instead of waiting for the report, the SEC started working on its practices and procedures in January 2009 and, according to the Chairman, has streamlined enforcement procedures and worked to put more experienced staff on the frontlines.
Click http://www.sec.gov/news/speech/2009/spch090209mls-2.htm for the statement. Click http://www.sec.gov/spotlight/secpostmadoffreforms/oig-509-exec-summary.pdf to access the Executive Summary. Click http://www.sec.gov/news/speech/2009/spch090409mls.htm for the statement on the full report. Click http://www.sec.gov/news/studies/2009/oig-509.pdf to access the full report.