Find Post Investigations On:
Facebook Scribd Twitter
Friendfeed RSS Google Reader
» About This Blog | Meet the Investigative Team | Subscribe
Ongoing Investigation

Top Secret America

The Post explores the top secret world the government created in response to the attacks of Sept. 11.

Ongoing Investigation

The Hidden Life of Guns

How guns move through American society, from store counter to crime scene.

Have a Tip?

Talk to Us

If you have solid tips, news or documents on potential ethical violations or abuses of power, we want to know. Send us your suggestions.
• E-mail Us

Categories

Post Investigations
In-depth investigative news
and multimedia from The Washington Post.
• Special Reports
• The Blog

Reporters' Notebook
An insider's guide to investigative news: reporters offer insights on their stories.

The Daily Read
A daily look at investigative news of note across the Web.

Top Picks
A weekly review of the best
in-depth and investigative reports from across the nation.

Hot Documents
Court filings, letters, audits and other documents of interest.

D.C. Region
Post coverage of investigative news in Maryland, Virginia and the District.

Washington Watchdogs
A periodic look into official government investigations.

Help! What Is RSS?
Find out how to follow Post Investigations in your favorite RSS reader.

Hot Comments

Unfortunately I believe that we are limited in what we can focus on. I think that if we proceed with the partisan sideshow of prosecuting Bush admin. officials, healthcare will get lost in the brouhaha.
— Posted by denamom, Obama's Quandary...

Recent Posts
Bob Woodward

The Washington Post's permanent investigative unit was set up in 1982 under Bob Woodward.


Archives
See what you missed, find what you're looking for.
Blog Archive »
Investigations Archive »

Have a Tip?
Send us information on ethics violations or abuses of power.
E-Mail Us »

Other
Investigations
Notable investigative projects from other news outlets.
On the Web »
Top Picks »

Madoff Gets Break As Lawmakers Hammer SEC

POSTED: 04:22 PM ET, 01/ 5/2009 by Derek Kravitz


Bernard Madoff

Bernard Madoff, the alleged Ponzi scheme operator behind one of the largest Wall Street scams in American history, got a reprieve, of sorts, on Capitol Hill today.

Instead of Madoff feeling the brunt of the criticism for the $50 billion scam, which has hit investors, charities, schools and hedge funds around the world, it was the federal Securities and Exchange Commission that was feeling the heat.

Rep. Paul Kanjorski (D-Penn.), the chairman of the House Financial Services Committee, bluntly said at the beginning of the afternoon hearing into the Madoff scandal that regulators "should have detected the Madoff wrongdoing earlier because of the red flags of others."

"Clearly, our regulatory system ... failed miserably and we must rebuild it now," Kanjorski said at the committee hearing.

Rep. Carolyn Maloney (D-N.Y.) said many had "lost confidence in the SEC."

H. David Kotz, the SEC's inspector general, said the Madoff scandal should force the SEC to reevaluate its enforcement division and spark "overarching and comprehensive" reforms.

"It is our opinion that the matters that must be analyzed regarding the SEC and Bernard Madoff may go beyond the specific issues that SEC Chairman Cox has asked us to investigate," Kotz said.

And calling himself a "human face on this tragedy," businessman and Madoff investor Allan Goldstein told the committee that he was a "broken man" since the Madoff scheme was uncovered and said federal regulators "failed us."

"We had considered Madoff Securities not as a get rich quick scheme, but as a buffer against risk," Goldstein said. "We entrusted Mr. Madoff with all we had, and now everything that I worked for over a 50-year career is gone."

The 76-year-old Brooklyn native and fabric merchant gave $2.5 million in savings to Madoff. Over the years, Madoff had reported that Goldstein's invested amount had nearly doubled. But after the scandal broke, Goldstein said he was forced to cash in his life insurance policies to pay his mortgage and is in the process of selling his home.

Today's hearing came as prosecutors asked a federal judge to imprison Madoff before his trial after he allegedly sent $1 million in jewelry to friends and relatives, in violation of an asset freeze order.

Madoff's attorney, Ira Sorkin, said the items were family heirlooms, such as cufflinks and antique watches and not "significant."

But prosecutors said the five items were "very valuable jewelry." It was unclear if any of the items included watches Madoff is said to have purchased from British watch seller George Somlo. Madoff is said to have been an avid collector of vintage timepieces.

By Derek Kravitz |  January 5, 2009; 4:22 PM ET
Previous: How Much Does Madoff Still Have? | Next: Madoff Roundup, Richardson Fallout, Burris Takes to the Hill

Comments

Please email us to report offensive comments.



Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 

© 2010 The Washington Post Company