Citing Madoff miss, US Sen Schumer eyes SEC reform

September 3, 2009

USA-NAACP/   WASHINGTON, Sept 3 (Reuters) – Legislation to overhaul the U.S. Securities and Exchange Commission and prevent another Madoff-style fraud from escaping notice will be offered by U.S. Senator Charles Schumer, he said in a statement on Thursday.
   Citing a recent report that showed the SEC “botched numerous opportunities to uncover financier Bernie Madoff’s years-long fraud,” the New York Democrat said in the statement that he will discuss the bill with reporters.
   It will “improve the Securities and Exchange Commission’s ability to prevent another Madoff-style scam from escaping notice again,” the statement said.
   The SEC, which regulates securities markets, missed “numerous” red flags that may have pointed to the $65 billion Ponzi scheme perpetrated by financier Bernard Madoff, a U.S. government watchdog said in a blistering report on Wednesday.
   The agency never did a “thorough and competent” probe of Madoff’s operation, despite complaints dating back to 1992, said SEC Inspector General David Kotz in the report.
   Madoff pleaded guilty in March to orchestrating the Ponzi scheme, which used money from new investors to pay old ones. He is serving a 150-year prison term.
 (Reporting by Kevin Drawbaugh; Editing by James Dalgleish) ((; Tel: +1 202 898 8390)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit
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Thursday, 03 September 2009 16:35:16RTRS [nN03104145] {C}ENDS

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