Madoff’s first investigation with the SEC began in 1992 and there were several more investigations opened on him in the following years. With the five investigations opened by the SEC for Madoff, it has been determined that incompetent lawyer regulators were able to identify any “red flags” in any of the evidence submitted to the SEC for review (Rhee, 2009). Based on an article presented by Robert Rhee (2009), he proposed that the “red flags” were blatantly missed due to lawyer regulators not having the industry knowledge, experience, and the competency level needed to identify market trends and abnormalities in derivative calculations and investment transactions. Moveover, Rhee (2009) has identified that “Deep training and experience in accounting and finance are necessary to detect sophisticated market fraud,” such as the type of fraudulent activity Mr. Madoff was enacting in (p. 376). Therefore, Rhee (2009) has presented the notion that lawyer regulators may have the competency in the area of investment law, but they are lacking key sources of education in accounting and finance to adequately perform investigations in the investment and/or financial
Madoff’s first investigation with the SEC began in 1992 and there were several more investigations opened on him in the following years. With the five investigations opened by the SEC for Madoff, it has been determined that incompetent lawyer regulators were able to identify any “red flags” in any of the evidence submitted to the SEC for review (Rhee, 2009). Based on an article presented by Robert Rhee (2009), he proposed that the “red flags” were blatantly missed due to lawyer regulators not having the industry knowledge, experience, and the competency level needed to identify market trends and abnormalities in derivative calculations and investment transactions. Moveover, Rhee (2009) has identified that “Deep training and experience in accounting and finance are necessary to detect sophisticated market fraud,” such as the type of fraudulent activity Mr. Madoff was enacting in (p. 376). Therefore, Rhee (2009) has presented the notion that lawyer regulators may have the competency in the area of investment law, but they are lacking key sources of education in accounting and finance to adequately perform investigations in the investment and/or financial