The Securities Exchange Commission, set up to protect investors from unscrupulous crooks and con artists oversaw the implementation of the largest ponzi scheme the world has so far ever seen. In my view the SEC having been informed of the fraud and ignoring the allegations for more than a decade must be itself corrupt or at the very least criminally incompetent.
It seems to me that a fraud of this magnitude to be perpetrated by one man able to carry it on for decades is not possible without help from regulators at the very least turning a blind eye to the allegations registered against him.
If it were not for this ponzi scheme doing what all ponzi schemes have to eventually do, run out of more victims and implode, it would still not have been discovered. It took Madoff himself coming forward and confessing to it for the fraud to finally come to light.
The SEC is of course scandalized and embarrassed by this. The credibility of this organization is now totally trashed and they will have to put most of their resources into trying to rebuild their credibility. Making weak excuses why it didn’t investigate and how it’s not their fault will not be helpful in rebuilding their credibility.
Trivia - In Virginia, the Code of 1930 has a statute which prohibits corrupt practices or bribery by any person other than political candidates.
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