Bernard Madoff settles civil fraud charges with SEC without admitting wrongdoing

June 16, 2009 by · Leave a Comment
Filed under: Legal News 

Bottom-line, my gut tells me that this was purely political on the basis that if all the facts came to light, I am sure the SEC would have looked either complicit or incompetent.  Either of those findings would have reduced any remaining credibility the SEC had after this massive fraud took place for so long under their supposed “watchful” eye.

It seems to me in this country we are good at having outrage initially but the follow through has been quite lackluster.   I would really like to see some more teeth when we prosecute these white-collar and financial crimes.  Maybe after we do not have any meaningful investigations, we will see some real outrage to get our “balls” back.

News (Reuters):

Bernard Madoff, who ran the biggest investment fraud in history, was allowed to settle civil fraud charges with the U.S. Securities and Exchange Commission without having to admit any wrongdoing.

Tuesday’s announcement left some legal experts dumbfounded over why the SEC — which has been roundly criticized for failing to detect the Madoff fraud — would settle the case without demanding the jailed swindler accept responsibility.

“I am rather surprised that they would agree to a resolution or settlement where he doesn’t admit guilt in light of the enormity of the fraud, especially in light of the SEC being under so much criticism for being asleep at the switch,” said Bradley Simon, a criminal defense lawyer in New York not connected to the Madoff case.

Madoff, who has pleaded guilty to a $65 billion investment scam, is set to be sentenced on June 29. He could spend the rest of his life in prison.

Calls to the SEC were not immediately returned.

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