SEC failures on Madoff

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The Securities and Exchange Commission (SEC) was investigating his business in 2006 and asked to see the trading account where the fraudster claimed to house clients' investments. The account was actually empty, leading Madoff to panic. However, the SEC never followed up on its request.

"I thought it was the end game, over," Madoff recalled to investigators after his eventual arrest. "Monday morning they'll call and this will be over... and it never happened."

He was "astonished", he said.

In an excoriating internal report from the inspector general of the SEC, it emerged that the regulator had focused its attention on rumours Madoff was front-running — a form of insider trading based on knowledge of big forthcoming share purchases and sales. It should instead have followed up on the many tip-offs it received that Madoff's empire was a giant pyramid scheme.

The report also found the SEC only put junior staff on the Madoff case and he intimidated them by referring to his high-level friends at the regulator.