CREW Sues SEC for Records of Reforms in Wake of Madoff Scandal
Washington, D.C. - Today, CREW filed a lawsuit against the Securities and Exchange Commission (SEC), challenging the SEC’s failure to produce records in response to CREW’s October 6, 2009 Freedom of Information Act (FOIA) request for records related to reforms the SEC has taken in the wake of its failure to detect Bernard Madoff’s $65 billion Ponzi scheme.
Although the agency received numerous complaints and tips about Mr. Madoff’s activities over a 16-year period, and conducted five major investigations and examinations of Mr. Madoff, the SEC still failed to detect his colossal fraud. In January 2009, the SEC began implementing what it described as “decisive and comprehensive steps” to reduce the chance similar frauds will occur in the future or remain undetected by law enforcement, and an extensive Inspector General report outlining the SEC’s multiple failures suggested 58 more reforms in September. The records CREW seeks will help the public understand the extent to which the SEC has implemented meaningful and necessary reforms.
Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions. For more information, please visit www.citizensforethics.org or contact David Merchant at 202.408.5565 or email@example.com