Financial Regulatory Forum

Brokerages stumble on following in-house supervision rules – study

By Suzanne Barlyn

CORONADO, Calif., (Reuters) – Wall Street’s brokerages are falling short when it comes to policing their brokers, according to a nationwide series of examinations by state regulators.

The biggest issue: Many firms are not following their own procedures for keeping employees in check. (more…)

PERSONAL VIEW: Reflections on the successful prosecution of Tom Wilmot, UK boiler room king

By Alex Davidson – the views expressed are his own.

LONDON, Aug. 26 (Thomson Reuters Accelus) – Earlier this week Tomas Wilmot was sentenced at Southwark Crown Court to nine years in jail for conspiracy to defraud investors out of 27.5 million pounds through boiler rooms. I took a particular interest in the case because I had once worked for a short period as a dealer at Harvard Securities, a licensed dealer in securities run by Wilmot in London in the late 1980s.  One of the most powerful bosses of speculative share dealing operations over some 25 years had finally been caught.

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Will Goldman Complaint Repair the Damage from Madoff Fiasco?

Some former government prosecutors are cheering the SEC’s case against Goldman Sachs. Some even called it a watershed event that might rehabilitate the SEC’s image, which has been tarnished in the fallout from the financial crisis and the failure to catch financial fraudsters like Bernard Madoff. Now all the SEC has to do is win its trial against Goldman, which is vowing to fight the charges, reports WG&L, from Thomson Reuters tax and accounting specialists. (more…)

SEC eyes inspection review; part of 5-yr draft plan

Booking mug shot of Bernard Madoff released to Reuters on March 17, 2009. Madoff pleaded guilty March 12, 2009, to orchestrating the biggest investment fraud in Wall Street history and was jailed to await a sentence that could keep him in prison for the rest of his life.  NO SALES   EDITORIAL USE ONLY    REUTERS/UNITED STATES MARSHALS SERVICE/FOIA/Handout   (UNITED STATES)    Oct 9 (Reuters) – The U.S. Securities and Exchange Commission has released a draft five-year strategic plan which includes an overhaul of the way it inspects investment advisors in the wake of the Bernard Madoff Ponzi scheme scandal. (more…)

Madoff case may bring new whistleblower bounties

MADOFF/CONGRESS   By Ross Kerber
   BOSTON, Sept 3 (Reuters) – U.S. government rewards for whistleblowers: $102 million for exposing Pfizer Inc’s improper drug marketing tactics, zero for warning about Bernard Madoff’s global scam.
   The gaping discrepancy arises from federal rules on paying whistleblowers in different industries, and top securities regulators think it’s time for a change. (more…)

Congress to probe SEC’s lapse on Madoff

MADOFF/    WASHINGTON, Sept 3 (Reuters) – An investigative panel in the U.S. Congress will hold hearings on the failure of the U.S. Securities and Exchange Commission to follow clues that could have uncovered Bernard Madoff’s $65 billion Ponzi scheme.
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U.S. internal review blasts SEC over Madoff

Defrauded investors and their supporters hold signs during a rally near the United States Courthouse in lower Manhattan, June 29, 2009, after the sentencing hearing for convicted swindler Bernard Madoff. BOSTON/WASHINGTON, Sept 2 (Reuters) – U.S. securities
regulators missed repeated chances to uncover Bernard Madoff’s Ponzi scheme, a sharply critical review by a federal watchdog said on Wednesday.

A summary of a report by the U.S. Securities and Exchange Commission’s Inspector General, released by the SEC, described five investigations the SEC launched into Madoff’s business because of complaints dating to 1992, and said “a thorough and competent investigation or examination was never performed.”

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Top examiner to leave U.S. securities regulator

 

The headquarters of the U.S. Securities and Exchange Commission   WASHINGTON, July 8 (Reuters) – The U.S. Securities and Exchange Commission’s top inspector and examiner, Lori Richards, plans to leave the agency Aug. 7, the SEC said on Wednesday. Richards, director of the compliance inspections and examinations unit since it was created in 1995, leaves after a year in which her division and the SEC enforcement unit were accused of failing to spot Bernard Madoff’s $65 billion investment fraud. (more…)

U.S. SEC lawyer raised alarm about Madoff – report

Booking mug shot of Bernard Madoff released to Reuters on March 17, 2009. Madoff pleaded guilty March 12, 2009, to orchestrating the biggest investment fraud in Wall Street history and was jailed to await a sentence that could keep him in prison for the rest of his life.     WASHINGTON, July 1 (Reuters) – A U.S. Securities and Exchange Commission lawyer warned  about irregularities at Bernard Madoff’s financial management firm as far back as 2004, The Washington Post reported on Thursday, citing agency documents and sources familiar with the investigation.
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