Daily Archives: December 16, 2008, 11:59 pm

Securities Docket News Wire for Dec. 16, 2008

Breaking: SEC’s Cox States SEC Received Credible, Specific Allegations About Madoff But Failed to Thoroughly Investigate. http://is.gd/c33u # Former Gen Re CEO Sentenced to Just Two Years in Prison for Role in AIG Scheme. http://is.gd/c2eE # SEC Receiver Pomerantz: Dreier LLP to File for Bankruptcy. http://is.gd/c0Ap # Madoff given until tomorrow to get three co-signers to guarantee $10 million bail…

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Breaking: Chairman Cox States SEC Received Credible, Specific Allegations About Madoff But Failed to Thoroughly Investigate

SEC Chairman Christopher Cox stated Tueday evening that he is “deeply troubled” by initial findings that “credible and specific allegations regarding Mr. Madoff’s financial wrongdoing, going back to at least 1999, were repeatedly brought to the attention of SEC staff, but were never recommended to the Commission for action. I am gravely concerned by the apparent multiple failures over at…

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Former Vice Chairman of ISE Sentenced to 18 Months for Conspiracy to Commit Securities Fraud

John Marshall, former vice chairman of the International Securities Exchange, was sentenced on Monday to 18 months in prison for his role in an alleged conspiracy to leak confidential information about the $2.8 billion takeover of the ISE in 2007.  As previously discussed in detail here, Marshall pleaded guilty on September 26, 2008 to one count of conspiracy to commit…

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Sen. Dodd Seeks Explanation from SEC for Failure to Detect Madoff Scheme

Senate Banking Committee Chairman Christopher Dodd is seeking an explanation from the SEC as to why it failed to detect Bernard Madoff’s $50 billion Ponzi scheme. Bloomberg reports that Dodd has requested information from the SEC about the case. Dodd’s spokesperson, Kate Szostak, stated yesterday that “Senator Dodd is concerned not only about the people caught up in this reported…

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UK: London-Based Madoff International Ceases Trading After Discussions With FSA

London-based Madoff International, which had attempted last week to clarify that it was not a part of US asset management company Madoff Investments, ceased trading yesterday after holding discussions with the UK’s FSA yesterday.   The Telegraph reports that Mr. Madoff owns 88 percent of Madoff International, “which takes no client money and works as a proprietary hedge fund for the…

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