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

  1. […] morning following its stunning announcement that it failed for almost a decade to thoroughly investigate credible, specific allegations that […]

  2. […] alleged $50 billion Ponzi scheme by Bernard Madoff after Congress returns on Jan. 6. As discussed here in detail, SEC Chairman Cox stated Tuesday evening that he is “deeply troubled” by the […]

  3. […] his stunning statement last night, SEC Chairman Cox said that he had directed a full and immediate review of the past […]

  4. […] recent revelation by Chairman Cox that the SEC failed to follow up on credible, specific tips that Bernard Madoff was running an alleged Ponzi scheme has reportedly “put the agency […]

  5. […] protect the public interest. We feel they fell down on the job in this instance.”  The SEC acknowledged last week that it failed to follow up on credible, specific allegations brought to it about […]

  6. […] about the SEC’s admitted failures in the Madoff case, Cox said the SEC’s emphasis on enforcement is as strong as ever. […]

  7. I have advised both Chair Cox and IG Kotz that the agency “dropped the ball:” on both Madoff and Thomas Petters here in Minnesota-see text of email

    Dear OIG Kotz and Chairman Cox:

    I have called and emailed on several recent occasions Chris Cox in re the above-captioned matters, emailing Chris on 12/21,12/24,12/26, and 12/28- the purpose of said emails was to alert the SEC of the massive swindle by both Bernard Madoff [Madoff] and Thomas Petters [Petters] here in the Minnesota District and to accordingly ask Chris, as a $40+ million creditor of Petters, to initiate a rescission of Polaroid which Petters acquired with $426 million in swindled cash in June of 2005. I understand that Chris will be leaving office soon and therefore forthwith action on this will be in the best interests of the victims, the agency, and Chris personally. US Attorney David Kelley and I alerted the SEC’s New York Regional Office on this in June of 2005, but agency personnel “dropped the ball” with Petters as Chris advised they had with Madoff. If he has already not done so, please have Chris review these email transmissions and do get back to me with a rescission plan strategy or other appropriate expedited remedies which Chris can get done before leaving office [when does he leave office?]. I will call you Monday. The reason I went directly to Chris on this is because Petters has already been indicted on 20 counts of fraud and has been in prison now for 3 months awaiting trial where his co conspirators [all now convicted ] will testify against him. From an investigatory point of view, there is nothing to further investigate and an expedited rescission will offer near-term relief to me personally as well as the many others he has swindled. I have been waiting a return of and on capital on seven promissory notes since 1997 and suffered a stroke in May, 2005 over the stress caused by having to live this way since 1997.

    Thank you for your expedited courtesies.

    Richard Hettler
    612 285-8458