Regulators Probed Madoff Eight Times in 16 Years

Submitted by Melissa Hoffmann on Mon, 01/05/2009 - 15:23

Bernard L. Madoff Investment Securities was examined at least eight times in 16 years by the U.S. Securities and Exchange Commission (SEC) and other regulators, who often came armed with suspicions, the Wall Street Journal reported.

SEC officials followed up on e-mails from a New York hedge fund that described Bernard Madoff's business practices as "highly unusual," the paper said.

The Financial Industry Regulatory Authority, the industry-run watchdog for brokerage firms, reported in 2007 that parts of the firm appeared to have no customers, according to the Journal.

The SEC interviewed Madoff twice, according to the Journal, but didn't take action. Regulators never came close to uncovering the alleged $50 billion Ponzi scheme that investigators now believe began in the 1970s, the paper said.
 

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