Regulator Lawyers For Securities And Exchange Commission Essay

1256 Words Jul 13th, 2015 6 Pages
Despite five significant investigations against Bernie Madoff between 1992 and 2006, regulator lawyers for Securities and Exchange Commission (SEC) produced lackluster efforts and results to prevent Madoff from conducting financial fraud that robbed many individuals, charities, non-profit organization, and educational institutions of their entrusted and invested funds (Shafritz, Russell, & Borick, 2013). In essence it was the SEC that enabled Madoff to further build his Ponzi scheme, which resulted with Madoff defrauding investors of an estimated $65 billion; the eventual downfall of Madoff’s Ponzi scheme resulted with Madoff receiving a 150-year prison term and ordered to repay his investors through restitution (Shafritz, Russell, & Borick, 2013). Unfortunately, the SEC failed in many respects with respect to the Madoff Ponzi scheme. The SEC failed to understand the complexities of its own regulations along with the complexities of the financial industry and to hire and provide competent personnel to perform regulatory investigations; the SEC apparently took a laissez-faire leadership approach to operating its various district branches; finally, the SEC operated without any sound objectives or the presence of performance management to ensure the SEC operated in an honorable and professional manner.
Competency, in Operations and Leadership First, Madoff was a competent manipulator, in terms of his ability to manipulate SEC staff during the one of many investigations…

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