SEC Announces Madoff Deal…And Resignation of Top Official

February 9, 2009

US (ChattahBox) – The SEC is having a busy week, after they announced the resignation of their top enforcer, and extended a deal to fix civil liabilities in the Madoff case.

While Madoff will still be facing criminal charges separate from the actions of the SEC, they say they have offered the disgraced billionaire a deal that would force him to pay heavy penalties, as well as money he stole from investors, which reached well into the billions. Specifics have not been released.

In the meantime, Linda Thomsen, the top official within the SEC, who has been widely criticized for the way she handled the Madoff case, has announced her resignation. While Robert Khuzami has been rumored as her replacement, the former U.S. Attorney’s position has not been verified, and the SEC has not confirmed that a replacement has been picked.

They are expected to release an official statement on Friday.


Comments

2 Responses to “SEC Announces Madoff Deal…And Resignation of Top Official”

  1. David V on February 10th, 2009 7:10 am

    The case of Bernie Madoff is a typical case study in how the SEC encourages fraud. Investors figured out that Madoff couldn’t possibly make the profits he claimed, and have been writing the SEC since 1999, urging them to put a stop to Madoff’s Ponzi scheme. However, Madoff used his close family ties to the SEC, and was instrumental in founding key regulatory bodies – and then nominated his family members to serve on their boards. When skeptical investors inquired about the irregularities in his fund, Madoff told them that the SEC had already investigated and cleared him over a period of three years.

    While Madoff stole $50 billion dollars under their noses, the SEC’s budget surpassed $900 million dollars, and grew at record rates during the two Bush administrations. In response to this outrageous case of nepotism and corruption, the government will likely increase its budget and staff once again.

  2. Laurie on February 12th, 2009 11:53 am

    I hope they are taking a look at some of his family now. His wife took millions out of one of their brokerage accounts a day before his arrest. His niece, brother and sons all worked for him. How could they not be involved.

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