It was also recorded that in 2004 and 2005 that the examinations that were conducted sufficient evidence was found to determine suspicious, however once again there was total disregard. It was suggested in the OI C report that lack of training and experience kept the SEC from pursing an investigation. The relatively inexperienced Enforcement staff failed to appreciate the significance of the analysis in the complaint, and almost immediately expressed skepticism and disbelief. Most of their investigation was directed at determining whether Madoff should register as an investment adviser or whether Madoff's hedge fund investors' disclosures were adequate.”(OIG-509) The OIC indicates that there were many missed opportunities to subdue the Madoff
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was shelved, in NERO, a nearly identical examination of Madoff was just beginning. In April 2004, a NERO investment management examiner had been conducting a routine examination of an unrelated registrant when it discovered internal e-mails from November and December 2003 that raised questions about whether Madoff was involved in illegal activity involving managed accounts. These internal e-mails described the red flags the registrant's employees identified while performing due diligence using widely available information on their Madoff investment. The red flags the registrant had identified included Madoffs: (1) incredible and highly unusual fills for equity trades; (2) misrepresentation of his options trading; (3) secrecy; (4) auditor; (5) unusually consistent and non-volatile returns over several years; and (6) fee structure.”(OIC-509)
There was another investigation that was closed with no extensive findings depending primarily on the uttered words of Madoff. His charm has gone to work for him once again. Repots specifically indicate that because the NERO was working in silos it was difficult to generate any conclusive result because the right hand didn’t know what the left was doing.
Eventually someone took notice and in December of 2008 Madoff confessed to executing what has been describe as a Ponzi scheme. The aftermath of Bernie has caused the SEC to implement a wide range of measures to help ensure that there is not another occurrence like the Madoff Affair. The list of changes as of a direct result of this debate includes:
• Revitalizing the Enforcement
was shelved, in NERO, a nearly identical examination of Madoff was just beginning. In April 2004, a NERO investment management examiner had been conducting a routine examination of an unrelated registrant when it discovered internal e-mails from November and December 2003 that raised questions about whether Madoff was involved in illegal activity involving managed accounts. These internal e-mails described the red flags the registrant's employees identified while performing due diligence using widely available information on their Madoff investment. The red flags the registrant had identified included Madoffs: (1) incredible and highly unusual fills for equity trades; (2) misrepresentation of his options trading; (3) secrecy; (4) auditor; (5) unusually consistent and non-volatile returns over several years; and (6) fee structure.”(OIC-509)
There was another investigation that was closed with no extensive findings depending primarily on the uttered words of Madoff. His charm has gone to work for him once again. Repots specifically indicate that because the NERO was working in silos it was difficult to generate any conclusive result because the right hand didn’t know what the left was doing.
Eventually someone took notice and in December of 2008 Madoff confessed to executing what has been describe as a Ponzi scheme. The aftermath of Bernie has caused the SEC to implement a wide range of measures to help ensure that there is not another occurrence like the Madoff Affair. The list of changes as of a direct result of this debate includes:
• Revitalizing the Enforcement