Burned by its high-profile failure in the Madoff case, the SEC is ramping up its training of staff on how to detect certain types of securities fraud. Reuters reports that the SEC’s inspection unit (the Office of Compliance Inspections and Examinations) is now offering 90-minute classes for employees on topics such as “Basics of Ponzi schemes, affinity fraud and related schemes” and “Exam issues and techniques for detecting Ponzi schemes, affinity fraud and related schemes.” “We’re doing it because of Bernie Madoff,” one SEC official told Reuters.
Lori Richards, director of the OCIE confirmed the increased training, and stated that it “will help examiners spot the ‘yellow flags’ of fraud and to investigate them using the latest fraud detection techniques.”
One response to “SEC’s OCIE Unit Ramps Up Training on Detecting Ponzi Schemes”
[…] SEC’s OCIE Unit Ramps Up Training on Detecting Ponzi Schemes by Bruce Carton of Securities Docket […]