As Bernie Madoff begins his 150 year prison sentence, victims are now looking to lay blame at the door of the SEC (Securities and Exchange Commission) according to reports from Bloomberg.com
Whilst initial responses to the sentencing appear satisfactory, Madoff himself is 71 making a prison sentence of that length somewhat excessive other than to make a point.
It would seem many victims feel the US regulators should have had systems, either manual or technical in place to spot one of the largest ever Ponzi schemes, the penalty issued being 6 times that of the sentences issued to former Enron executives.
Quite how much change in regulation will happen and when remains to be seen. With new investment frauds coming to light as the economy hardens, it would seem there is no question that regulations will need to be tightened on a global scale.
Showing posts with label Bernie Madoff. Show all posts
Showing posts with label Bernie Madoff. Show all posts
Tuesday, June 30, 2009
Wednesday, April 8, 2009
Sir Allen Stanford Claims "Not a Ponzi Scheme"
'Clients lost no money' said Sir Allen Stanford.
Sir Allen Stanford, accused of an $8b fraud by U.S. regulators, has insisted no money was lost by customers dealing with his financial services companies. In an emotional interview with ABC, the Texan financier wept as he spoke about how much he loved his employees.
He later threatened to punch anyone who repeated allegations that Sir Allen was involved in the laundering of Mexican drug money.
He has already denied any wrongdoing in the case. But the U.S. financial regulator, the Securities and Exchange Commission (SEC), has said Sir Allen is guilty of fraud of “shocking magnitude”, and criminal charges are expected to follow.
By court order, the Texan billionaire is denied access to his own money, and he said the seizure of his assets had left him with little money and few changes of clothing. Even though in the past he has reportedly owned both a castle and an island he insists his lifestyle was always frugal.
Throughout the interview Sir Allen ran rapidly across a wide spectrum of emotion from the mawkish to combative, says the BBC's Kevin Connolly in Washington.
He insisted any attempt to compare his investment companies with those of the disgraced Wall Street financier Bernard Madoff was unfair. He added that customers who have tried to recover their money from his banks have been able to do so.
In one of his more dramatic moments, he said he would “die and go to hell” if his investment plans were proved to be financial pyramid schemes, or Ponzis. “If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” he asked.
Sir Allen came to prominence last year when he sponsored a high-profile Twenty20 cricket tournament, which culminated in a match between England and an all-stars West Indies team that gave each winning player $1m.
His property in the Caribbean state of Antigua and Barbuda, where many of his business interests are based, has already been seized by the islands' government.
Courtesy of The BBC
Think you might be a victim of a Ponzi Scheme?
Sir Allen Stanford, accused of an $8b fraud by U.S. regulators, has insisted no money was lost by customers dealing with his financial services companies. In an emotional interview with ABC, the Texan financier wept as he spoke about how much he loved his employees.
He later threatened to punch anyone who repeated allegations that Sir Allen was involved in the laundering of Mexican drug money.
He has already denied any wrongdoing in the case. But the U.S. financial regulator, the Securities and Exchange Commission (SEC), has said Sir Allen is guilty of fraud of “shocking magnitude”, and criminal charges are expected to follow.
By court order, the Texan billionaire is denied access to his own money, and he said the seizure of his assets had left him with little money and few changes of clothing. Even though in the past he has reportedly owned both a castle and an island he insists his lifestyle was always frugal.
Throughout the interview Sir Allen ran rapidly across a wide spectrum of emotion from the mawkish to combative, says the BBC's Kevin Connolly in Washington.
He insisted any attempt to compare his investment companies with those of the disgraced Wall Street financier Bernard Madoff was unfair. He added that customers who have tried to recover their money from his banks have been able to do so.
In one of his more dramatic moments, he said he would “die and go to hell” if his investment plans were proved to be financial pyramid schemes, or Ponzis. “If it was a Ponzi scheme, why are they finding billions and billions of dollars all over the place?” he asked.
Sir Allen came to prominence last year when he sponsored a high-profile Twenty20 cricket tournament, which culminated in a match between England and an all-stars West Indies team that gave each winning player $1m.
His property in the Caribbean state of Antigua and Barbuda, where many of his business interests are based, has already been seized by the islands' government.
Courtesy of The BBC
Think you might be a victim of a Ponzi Scheme?
Wednesday, April 1, 2009
Securities and Exchange Commission looks to private sector to help uncover fraud
Securities and Exchange Commission looks to private sector to help uncover fraud.
(Reuters) - Mary Schapiro, the new chairman of the U.S. Securities and Exchange Commission (SEC), is looking to enlist private sector help in uncovering fraud, the Financial Times reported.
According to an interview posted on the paper's website, Schapiro said the SEC was exploring new approaches to enforcement, particularly in the oversight of investment advisors.
"We need to find some ways to increase staffing but beyond that, leveraging third parties without abdicating our responsibility," Schapiro told the paper.
Beyond ramping up staffing at the agency, Schapiro said that using third parties such as auditors, who can do compliance reviews, is one way of employing outside help.
Schapiro, whose agency came under harsh criticism for not uncovering Bernie Madoff's $65 billion investment fraud, has set an aggressive agenda to rebuild the SEC's credibility by strengthening rules for money market funds and investment advisers, as well as giving shareholders more rights.
Courtesy of Reuters
(Reuters) - Mary Schapiro, the new chairman of the U.S. Securities and Exchange Commission (SEC), is looking to enlist private sector help in uncovering fraud, the Financial Times reported.
According to an interview posted on the paper's website, Schapiro said the SEC was exploring new approaches to enforcement, particularly in the oversight of investment advisors.
"We need to find some ways to increase staffing but beyond that, leveraging third parties without abdicating our responsibility," Schapiro told the paper.
Beyond ramping up staffing at the agency, Schapiro said that using third parties such as auditors, who can do compliance reviews, is one way of employing outside help.
Schapiro, whose agency came under harsh criticism for not uncovering Bernie Madoff's $65 billion investment fraud, has set an aggressive agenda to rebuild the SEC's credibility by strengthening rules for money market funds and investment advisers, as well as giving shareholders more rights.
Courtesy of Reuters
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