Madoff, SEC Reach Partial Settlement

Lora Bentley

Bloomberg reported Monday that Bernard Madoff has agreed not to contest certain claims the Securities and Exchange Commission has made against him in its civil enforcement lawsuit. Specifically, he agreed not to contest allegations that his investment firm was a fraud. He did not, however, admit or deny any wrongdoing, the story says.


The SEC's announcement indicates that U.S. District Court Judge Louis Stanton must approve the settlement before financial sanctions will be levied against Madoff. The settlement also continues a previously placed asset freeze and carries heavy penalties if Madoff commits another securities violation.


Madoff is scheduled to appear in court on Wed., Feb. 11 in a criminal case related to the scheme, according to Bloomberg.

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Feb 10, 2009 7:09 AM David V David V  says:

The case of Bernie Madoff is a typical case study in how the SEC encourages fraud. Investors figured out that Madoff couldn€™t possibly make the profits he claimed, and have been writing the SEC since 1999, urging them to put a stop to Madoff€™s Ponzi scheme. However, Madoff used his close family ties to the SEC, and was instrumental in founding key regulatory bodies - and then nominated his family members to serve on their boards. When skeptical investors inquired about the irregularities in his fund, Madoff told them that the SEC had already investigated and cleared him over a period of three years.

While Madoff stole $50 billion dollars under their noses, the SEC€™s budget surpassed $900 million dollars, and grew at record rates during the two Bush administrations. In response to this outrageous case of nepotism and corruption, the government will likely increase its budget and staff once again.


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