Tue, January 06, 2009
Starting in 1992, federal regulators on many occasions examined various aspects of Bernard Madoff's business operations, but they never turned up the alleged $50 billion Ponzi scheme that led to Madoff's arrest last month. The history of regulatory failure in the Madoff scandal:
1992
Securities and Exchange Commission
Madoff's name comes up in a probe of Florida accountants who allegedly sold unregistered securities.
1999
SEC examiners review trading practices at Madoff's investment advisory firm.
2001
The SEC's Boston office receives information from securities industry executive Harry Markopolos raising questions about the steady stock market returns of Madoff's firm.
2004
The SEC looks into whether Madoff's firm engaged in improper trading practices.
2005
The SEC interviews Madoff and members of his family, finding no improper trading practices.
2005
An industry-based regulatory office finds no improper trading practices by Madoff's firm.
2005
SEC investigators meet with Markopolos, who alleges that Madoff's firm is "the world's largest Ponzi scheme."
2006
An SEC enforcement investigation finds that Madoff and one of his clients misled regulators. As a result, Madoff agrees to register as an investment adviser.
2007
The Financial Industry Regulatory Authority examines Madoff's firm. No regulatory action results.
(Agencies)
