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World News See other World News Articles Title: MADOFF FAMILY TIES (Madoff employed niece wed to SEC compliance director) (alt. Title) MADOFF FAMILY TIES (Madoff employed niece wed to SEC compliance director) MADOFF FAMILY TIES COX TO PROBE ROLE OF BERNIE'S NIECE, HUSBAND An embarrassed Christopher Cox said his Securities and Exchange Commission is probing whether the agency's staff allowed confessed swindler Bernard Madoff to walk away from numerous fraud complaints filed against him over the years. Sources told The Post on Monday that a Madoff family member was married to a onetime SEC official - which is among the issues that Cox said are under investigation in a sweeping internal probe of the bungled case. "The Commission has learned that credible and specific allegations regarding Mr. Madoff's financial wrongdoing, going back to at least 1999, were repeatedly brought to the attention of SEC staff, but were never recommended to the Commission for action," Cox said last night. "I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations or at any point to seek formal authority to pursue them. "Moreover, a consequence of the failure to seek a formal order of investigation from the Commission is that subpoena power was not used to obtain information, but rather the staff relied upon information voluntarily produced by Mr. Madoff and his firm," the chairman said in his statement. His comments come at the same time news has surfaced that Shana Madoff Swanson, Madoff's niece, has been married to Eric Swanson, assistant director of the SEC's Office of Compliance, Inspections and Examinations' market-oversight unit, since 2006. Shana Swanson is the compliance attorney at Madoff's firm. Eric Swanson, according to the SEC, had overseen two inspections of Madoff's firm in 1999 and 2004. He left the agency in 2006. Cox revealed that the agency was "gravely troubled" that it didn't act on the numerous complaints filed against the firm, but he couldn't offer any details on whether internal manipulation or just pillow-talk kept the agency from investigating Madoff. The SEC chairman conceded in his bombshell statement that federal investigators are investigating "all staff contact and relationships with the Madoff family and firm, and their impact, if any, on decision by staff regarding the firm." He said all SEC officials involved in any Madoff relationships or those who had personal contact with the firm will be barred from the case, which now involves several law enforcement agencies. Cox said he's sparing no expense to find out how the case slipped through the SEC's fingers for so long. He said the "initial findings have been deeply troubling." Poster Comment: H/t Liz @ FR. TOPICS: Business/Economy; Crime/Corruption; Extended News; Government KEYWORDS: madoff http://www.freerepublic.com/focus/f-news/2150097/posts?page=1#1 Madoff's "investors" are decidedly NOT victims......although they will put on a b-i-i-i-i-i-g victim act...deserving of an Academy Award. Bernie was palling around with SEC types---Bernie bragged his niece married a SEC regulator----and many of his "investors" went to the wedding----figuring they had an "in" the rest of us poor slobs did not have. Bernie could get even more money for his investors without the SEC horning in. In effect, they were all aiding and abetting this fraud. Most of his investors figured Madoff was doing something illegal---frontrunning---that's why they were getting big returns (16% even in down markets). These "smart, rich" types were never bothered about Madoff's sub rosa activities. Madoff's investors----who were astute businessmen---- pocketing 16% returns calculatedly ignored this scam. Most of his investors figured Madoff was doing something illegal---frontrunning---and that's why they were getting big returns (16% even in down markets). I do not believe these so-called "investors" sob stories for a nanosecond. Impossible to believe astute businessman who made fortunes in competitive businesses would allow themselves to be scammed.....unless......these privileged elites were in collusion with Madoff to engage in a massive tax evasion scheme. Tax evasion would explain why savvy, astute businessmen were giving this guy huge sums ---$100-500 million--- to "invest." Keep in mind, at the end Madoff was left with some $300 million out of $50 billion. That much money does not just evaporate. Apparently Madoff kept a cut of the "investment" and wire-transferred the bulk offshore to friendly money laundering havens-----out of sight of the IRS, SEC, and US banking laws. The whole scam crashed b/c Madoff probably wanted a bigger cut but the "investors" refused. NOTE: They keep saying they are "wiped out." However, savvy investors DO NOT put all their eggs in one basket as these people did. This whole deal smells to high heaven. People stupid enough to give Madoff $100-500 million to evade taxes are also criminals. ======================================= TAX-EXEMPT FRAUD Madoff was handling millions in tax-exempt funds for so-called "charities." The IRS says the biggest potential for IRS fraud are these tax-exempt non-profit charities doing deals with other tax-exempt non-profits----all posing as do-gooder "foundations" and "charities." For instance, the charity owners go on luxury trips "for charity" which are charged to the tax-exempt. A huge part of the fraud is tax evasion-----one non-profit "donating" to another non-profit "charity." This is nothing more than money laundering.....the charity takes a cut then converts the bulk of the donation to an offshore account for the donor's use later---out of sight of the IRS, SEC, and US banking laws. 1 posted on Wednesday, December 17, 2008 4:22:15 AM by Liz
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#1. To: scrapper2 (#0)
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"Wherever a Knave is not punished, an honest Man is laugh'd at." -- George Savile (1633-1695) |
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