FY 2009 Congressional Justification
The mission of the Securities and Exchange Commission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The SEC's oversight responsibilities directly impact the financial well-being of a majority of American, as more than 50 percent of U.S. households own stocks either directly of through mutual funds.
The Commission seeks to detect problems in the securities markets, prevent and deter violations of federal securities laws, and alert investors to possible wrongdoing. When violations occur, the SEC aims to take prompt action to halt the misconduct, sanction wrongdoers effectively, and return funds to harmed investors.
Harry Markopolos, a former securities industry executive and fraud investigator, brought his allegations to the SEC about improprieties in Madoff's business starting in 2000 after determining there was no way Madoff could have been making the consistent returns he claimed.
Markopolos and his investigators raised 29 specific red flags regarding Madoff's operations to SEC staff in Boston, New York and Washington.
While the SEC is incompetent, the securities industry's self-policing organization, the Financial Industry Regulatory Authority, is "very corrupt," Markopolos charged.
SOURCE ...
Madoff Tipster Markopolos Cites SEC’s ‘Ineptitude’
"too many attorneys and too few professionals with any sort of financial background"
Markopolos described repeated meetings with SEC investigators in Boston and New York, saying they appeared to lack the financial expertise needed to understand his warnings or brushed them off. He later tried to alert the media, without success, he said. SOURCE...
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