Most of U.S. are well aware of the fact that the Securities Exchanges Commission ("SEC") has been failing (miserably) in its watchdog duties. Here are just a few issues.
NY Times Business Day reports "S.E.C. Illegally Destroyed Case Files, Lawyer Says"
RS Taibbi "Is the SEC Covering Up Wall Street Crimes"?
This includes Mr. Markopolis blowing the whistle on Madoff and the SEC totally ignoring the Madoff case - over and over again. There's also the case of the Office of Inspector General ("OIG") of the SEC being accused of acting like Peyton Place.
Rolling Stone's Matt Taibbi "SEC Rocked by Lurid Sex-and-Corruption Lawsuit"
David Weber was an chief executive at the SEC who investigated bad faith inside the SEC. As a result of his efforts, he felt his safety was in question. He took protective measures; and they fired him. Mr. Weber sued the SEC and WON! The SEC was forced to offer him the job back (he declined). The SEC had to pay David Weber $580,000. (See Bloomberg story - HERE).
NOW - there's another story out this past Friday. It is by Nick Divito of Courthouse News. The title is "SEC Attorney Lowers the Boom on the Agency". More on the new story - below the fold.
SEC Attorney Furey Sues SEC Claiming Agency Policy to Avoid Madoff Cases</'h3>
As reported by Nick Divito of Courthouse News;
MANHATTAN (CN) - An SEC attorney sued the Securities and Exchange Commission, claiming it retaliated for her complaints that its New York Regional Office had a policy not to go after investment managers - including Bernard Madoff.
Kathleen Furey sued the SEC for records in a federal FOIA complaint. The 19-page lawsuit includes 123 pages of attached exhibits.
Furey claims that from Jan. 1, 2002 to December 2008, an assistant director in the New York Regional Office told his 20 staff attorneys not to bring administrative proceedings or civil actions under the Investor Advisor Act or the Investment Company Act.
If our watchdog agencies are chiefly invested in covering up bad faith acts, then our nation as a whole - suffers the consequences. None of the SEC executives who are engaging in the cover ups, are the ones paying the cost of litigation and the $580,000 pay out to David Weber.
Your paying the costs of the cover ups!
And that ain't Right!