Bernie Madoff Had Aiders And Abettors

[Policing Wall Street]


Bernie Madoff was sentenced to 150 years behind bars today for his massive swindles and will die behind bars.

Joe Nocera is a prominent financial reporter for The New York Times.  On June 27, 2009 Nocera wrote an article, “Chasing Small Fry, S.E.C. Let Madoff Get Away.” 

Nocera accurately describes how Richard A. Kwak, a former Morgan Stanley broker, was pursued by the Securities and Exchange Commission enforcement staff for a market manipulation scheme that did not exist. 

Eventually, $1 million in debt, Kwak was cleared by a jury of one charge and the jury was undecided on a second charge. Nocera wrote an excellent article and I heartily recommend that readers of my column peruse Nocera’s story for an understanding of why the SEC pursues small fry. 

Of course the reason is obvious. Namely that the SEC hopes that the small fry do not have the resources to fight the SEC and will sign a consent decree-while neither admitting nor denying the charges.

Nocera then contrasts the investigation by the SEC of Richard Kwak with the non-investigation of Bernard Madoff, despite the entreaties of Harry Markopolos, who had approached the SEC in 2000, 2001 and 2005 with statistical evidence and the names of other financial experts, that Madoff was committing a fraud.

Yet Nocera does not state why the SEC did not investigate Madoff. 

Nocera does not even attempt to provide an informed opinion concerning the SEC’s non-investigation and even protection of Madoff. 

No SEC official has ever stated why Madoff was not investigated even though the statistical evidence proved that Madoff was engaging in a massive fraud.

The reason why no SEC official has spoken is simply what has been previously stated in this column in numerous pieces about the Bernie Madoff fiasco.  See for example, “Who Aided and Abetted Madoff, Mr. Ponzi?”
http://www.blackstarnews.com/news/135/ARTICLE/5219/2008-12-17.html

Arthur Levitt, former Chairman of the Securities and Exchange Commission was a friend and protector of Madoff.  Furthermore, in another article, “How Levitt Covered Up Wall Street Scandal,” http://www.blackstarnews.com/news/135/ARTICLE/5481/2009-03-18.html we showed how the former SEC chief covered up violations of federal securities law at the American Stock Exchange (AMEX).