Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: KLP who wrote (284276)	12/14/2008 10:17:18 PM
From: Stevefoder	Read Replies (1) \| Respond to of 793958

Where was the SEC for starters? We have regulators....Where have they been? A better question would be where are the auditors? A publicly traded company or fund (e.g. listed stocks) have annual audits which will usually prevent such flagrant fraud. However, this company was a "invitation only" investment company and hedge fund. I would expect that the SEC would not normally do much overseeing of this type company. This is a "investor beware" type company since it is not publicly traded. Does anybody out there know if an annual audit of such a company is required or SEC overseeing is required? One interesting fallout of this fraud may be that individuals, pension funds and university endowment fund pulling out of hedge funds and other private equity managed funds. Could you imagine the trouble a university endowment manager would be in if he invested in a fraudulent company as that?

To: KLP who wrote (284276)	12/14/2008 10:57:16 PM
From: Snowshoe	Read Replies (1) \| Respond to of 793958

>>Where was the SEC for starters? We have regulators....Where have they been?<< The SEC was warned about Madoff, but failed to act... Fees, Even Returns and Auditor All Raised Flags online.wsj.com Harry Markopolos, who years ago worked for a rival firm, researched Mr. Madoff's stock-options strategy and was convinced the results likely weren't real. "Madoff Securities is the world's largest Ponzi Scheme," Mr. Markopolos, wrote in a letter to the U.S. Securities and Exchange Commission in 1999. Mr. Markopolos pursued his accusations over the past nine years, dealing with both the New York and Boston bureaus of the SEC, according to documents he sent to the SEC reviewed by The Wall Street Journal. In a statement late Friday, the SEC said "staff from the Division of Enforcement in New York completed an investigation in 2007, and did not refer the matter to the Commission for enforcement action." The SEC said it reopened the investigation Thursday. It's not clear what the focus of the 2007 investigation was, or why it was closed. A person familiar with the matter said it related to issues raised by Mr. Markopolos.

To: KLP who wrote (284276)	12/15/2008 12:50:08 AM
From: LindyBill	2 Recommendations Read Replies (1) \| Respond to of 793958

Where was the SEC for starters? We have regulators....Where have they been? You have to realize that no amount of regulation can stop this kind of swindle. This was private money moving privately. He was so good at it they lined up and he turned a lot of them away. It was "shove the money under the door" time.

To: KLP who wrote (284276)	12/15/2008 3:12:29 AM
From: Paul Smith	1 Recommendation Read Replies (2) \| Respond to of 793958

Where was the SEC for starters? We have regulators....Where have they been? The SEC had received warnings that it was a Ponzi scheme but did nothing. One good thing about Obama winning the election is that Chris Cox will be gone from the SEC. That is change that I can believe in! The SEC under Cox has, IMO, has done great harm. From their unwillingness to enforce the law with regard to naked shorting to their removal of the uptick rule, the SEC under Cox has been very hedge fund friendly and hostile to the interests of small investors and the integrity of the system.