WASHINGTON, Sept 4 (Reuters) - Dozens of current and former
employees of the U.S. Securities and Exchange Commission
ranging from powerful former chairmen to junior attorneys were
questioned about why the agency failed to detect financier
Bernard Madoff's massive investment fraud.
Madoff's sons turned him in to law enforcement officials last winter and he is now serving a 150-year prison sentence after pleading guilty to running a Ponzi scheme involving as much as $65 billion.
A lengthy report released Friday by the SEC's internal watchdog, Inspector General David Kotz, detailed the agency's missteps and fumbling of tips and complaints about Madoff over several years. The report said sworn testimony was taken from 140 people, including the following:
CURRENT OR FORMER SEC EMPLOYEES:
* Christopher Cox, former SEC Chairman
* William Donaldson, former SEC Chairman
* Annette Nazareth, former SEC Commissioner
* Elisse Walter, SEC Commissioner
* Linda Thomsen, partner at Davis Polk & Wardwell, former Director, Division of Enforcement
* Lori Richards, former Director, Office of Compliance Inspections and Examinations
* Alex Sadowski, Assistant General Counsel, Getco LLC, and former Branch Chief, Office of Compliance
* Mavis Kelly, former Branch Chief, now Assistant Director, Office of Compliance
* Walter Ricciardi, partner at Paul Weiss Rifkind Wharton & Garrison, former District Administrator in Boston and former Deputy Director, Division of Enforcement
* Jacqueline Wood, lawyer with Proskauer Rose LLP, former Staff Attorney
* Gene Gohlke, Associate Director, Office of Compliance
* Matthew Daugherty, Branch Chief, now Senior Special Counsel, Office of Compliance
* Dorothy Eschwie, Assistant Regional Director, New York Regional Office
* Thomas Thanasules, Securities Compliance Examiner, now Staff Accountant, New York
* Michael Kress, Branch Chief, New York
* Neil Chelo, Director of Research, Benchmark Plus Management LLC
* Frank Casey, President-USA, Fortune Asset Management
* Grant Ward, Senior Counsel, MetLife Group, and former SEC Assistant District Administrator, Boston
* Edward Manion, Staff Accountant, Boston
* Michael Garrity, Branch Chief, now Assistant Regional Director, Boston
* John Dugan, former Branch Chief and Assistant Regional Director, now Associate Regional Director, Boston
* Andrew Caverly, former Staff Attorney and Branch Chief, now Assistant Regional Director, Broker-Dealer Inspection Program, Boston
* David Bergers, Assistant District Administrator, now Regional Director, Boston
* Eric Swanson, General Counsel, BATS Trading, former Assistant Director, Office of Compliance
* Vance Anthony, Economist, Office of Economic Analysis
* Stewart Mayhew, Assistant Chief Economist, now Deputy Chief Economist, Office of Economic Analysis
* Jonathan Sokobin, SEC Deputy Chief Economist, now Director, Office of Risk Assessment
* Mark Donohue, Branch Chief and Assistant Director, Office of Compliance
* John McCarthy, General Counsel, Getco LLC, former Attorney, Division of Market Regulation, and former Associate Director, Office of Compliance
* Juan Marcelino, Greenberg Traurig law firm, former Regional Administrator in Boston
* William Dale, former Assistant Chief Economist, Office of Economic Analysis
* George Curtis, Regional Director, Denver, now Deputy Director, Division of Enforcement
* Leslie Kazon, Assistant Regional Director, Division of Enforcement, New York
* Andrew Calamari, Branch Chief, now Associate Regional Director, Division of Enforcement, New York
* Mark Schonfeld of Gibson Dunn & Crutcher, former Senior Counsel, Boston, and former Regional Director, Northeast Regional Office
* Tina Barry, Branch Chief, now Assistant Director, Office of Compliance
* William Ostrow, Senior Compliance Examiner, now Staff Accountant,), New York
* John Nee, Assistant Regional Director, New York
* Israel Friedman, Staff Attorney, now Branch Chief, New York
* Alex Vasilescu, Supervisory Trial Counsel and Chief of the Trial Unit, New York
* Jason Gettinger, Regional Litigation Counselor, Division of Enforcement, New York
* Paul Pocress, Staff Accountant, New York
* Robert Sollazzo, Associate Regional Director, New York
* Peter Lamore, Securities Compliance Examiner, now Staff Accountant, New York
* Stephen Johnson, Staff Accountant, now Branch Chief, Division of Enforcement, New York
* Simona Suh, Staff Attorney, now Branch Chief, Division of Enforcement, New York
* Peter Uhlmann, Chief of Staff to the Chairman, now Senior Advisor, Office of Executive Director
* Doria Bachenheimer, former Assistant Director, Division of Enforcement, Northeast Regional Office
* Meaghan Cheung, former Branch Chief, Division of Enforcement, Northeast Regional Office
OTHERS:
* Harry Markopolos, Chartered Financial Analyst and Certified Fraud Examiner
* Susan Tibbs, Director, Market Regulation Department, Financial Industry Regulatory Authority
* Jordan Materna, Director, Chicago Board Options Exchange
* Gene DeMaio, Senior Vice President, National Association of Securities Dealers
* Susan Geigel, Director of Regulatory Compliance, Depository Trust and Clearing Corp
* Elaine Solomon, former Secretary at Bernard L Madoff Investment Securities, LLP
In addition to obtaining sworn testimony, the inspector general said he also interviewed 122 people, including the following:
* Bernard Madoff (interview conducted on June 17, 2009)
* Arthur Levitt, former SEC Chairman
* James Hedges, President, LJH Global Investments
* Laura Goldman, Investment Advisor, LSG Capital
* Ron Egalka, CEO, Rampart Investment Management
* Gregory Stahl, Chartered Financial Analyst, SEI Investments
* Paul Broder, Risk Manager, Renaissance Technologies Corp
* Henry Laufer, Chief Scientist, Renaissance Technologies Corp
* Nathaniel Simons, Portfolio Manager, the Meritage Fund
* John Guthery, Vice President, LPL Financial
* Steve Luparello, Vice Chairman, Financial Industry Regulatory Authority
(Reporting by Julie Vorman; Editing by Gary Hill) Keywords: MADOFF/PEOPLE (julie vorman@reuters com, +1 202 898 8467) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Madoff's sons turned him in to law enforcement officials last winter and he is now serving a 150-year prison sentence after pleading guilty to running a Ponzi scheme involving as much as $65 billion.
A lengthy report released Friday by the SEC's internal watchdog, Inspector General David Kotz, detailed the agency's missteps and fumbling of tips and complaints about Madoff over several years. The report said sworn testimony was taken from 140 people, including the following:
CURRENT OR FORMER SEC EMPLOYEES:
* Christopher Cox, former SEC Chairman
* William Donaldson, former SEC Chairman
* Annette Nazareth, former SEC Commissioner
* Elisse Walter, SEC Commissioner
* Linda Thomsen, partner at Davis Polk & Wardwell, former Director, Division of Enforcement
* Lori Richards, former Director, Office of Compliance Inspections and Examinations
* Alex Sadowski, Assistant General Counsel, Getco LLC, and former Branch Chief, Office of Compliance
* Mavis Kelly, former Branch Chief, now Assistant Director, Office of Compliance
* Walter Ricciardi, partner at Paul Weiss Rifkind Wharton & Garrison, former District Administrator in Boston and former Deputy Director, Division of Enforcement
* Jacqueline Wood, lawyer with Proskauer Rose LLP, former Staff Attorney
* Gene Gohlke, Associate Director, Office of Compliance
* Matthew Daugherty, Branch Chief, now Senior Special Counsel, Office of Compliance
* Dorothy Eschwie, Assistant Regional Director, New York Regional Office
* Thomas Thanasules, Securities Compliance Examiner, now Staff Accountant, New York
* Michael Kress, Branch Chief, New York
* Neil Chelo, Director of Research, Benchmark Plus Management LLC
* Frank Casey, President-USA, Fortune Asset Management
* Grant Ward, Senior Counsel, MetLife Group, and former SEC Assistant District Administrator, Boston
* Edward Manion, Staff Accountant, Boston
* Michael Garrity, Branch Chief, now Assistant Regional Director, Boston
* John Dugan, former Branch Chief and Assistant Regional Director, now Associate Regional Director, Boston
* Andrew Caverly, former Staff Attorney and Branch Chief, now Assistant Regional Director, Broker-Dealer Inspection Program, Boston
* David Bergers, Assistant District Administrator, now Regional Director, Boston
* Eric Swanson, General Counsel, BATS Trading, former Assistant Director, Office of Compliance
* Vance Anthony, Economist, Office of Economic Analysis
* Stewart Mayhew, Assistant Chief Economist, now Deputy Chief Economist, Office of Economic Analysis
* Jonathan Sokobin, SEC Deputy Chief Economist, now Director, Office of Risk Assessment
* Mark Donohue, Branch Chief and Assistant Director, Office of Compliance
* John McCarthy, General Counsel, Getco LLC, former Attorney, Division of Market Regulation, and former Associate Director, Office of Compliance
* Juan Marcelino, Greenberg Traurig law firm, former Regional Administrator in Boston
* William Dale, former Assistant Chief Economist, Office of Economic Analysis
* George Curtis, Regional Director, Denver, now Deputy Director, Division of Enforcement
* Leslie Kazon, Assistant Regional Director, Division of Enforcement, New York
* Andrew Calamari, Branch Chief, now Associate Regional Director, Division of Enforcement, New York
* Mark Schonfeld of Gibson Dunn & Crutcher, former Senior Counsel, Boston, and former Regional Director, Northeast Regional Office
* Tina Barry, Branch Chief, now Assistant Director, Office of Compliance
* William Ostrow, Senior Compliance Examiner, now Staff Accountant,), New York
* John Nee, Assistant Regional Director, New York
* Israel Friedman, Staff Attorney, now Branch Chief, New York
* Alex Vasilescu, Supervisory Trial Counsel and Chief of the Trial Unit, New York
* Jason Gettinger, Regional Litigation Counselor, Division of Enforcement, New York
* Paul Pocress, Staff Accountant, New York
* Robert Sollazzo, Associate Regional Director, New York
* Peter Lamore, Securities Compliance Examiner, now Staff Accountant, New York
* Stephen Johnson, Staff Accountant, now Branch Chief, Division of Enforcement, New York
* Simona Suh, Staff Attorney, now Branch Chief, Division of Enforcement, New York
* Peter Uhlmann, Chief of Staff to the Chairman, now Senior Advisor, Office of Executive Director
* Doria Bachenheimer, former Assistant Director, Division of Enforcement, Northeast Regional Office
* Meaghan Cheung, former Branch Chief, Division of Enforcement, Northeast Regional Office
OTHERS:
* Harry Markopolos, Chartered Financial Analyst and Certified Fraud Examiner
* Susan Tibbs, Director, Market Regulation Department, Financial Industry Regulatory Authority
* Jordan Materna, Director, Chicago Board Options Exchange
* Gene DeMaio, Senior Vice President, National Association of Securities Dealers
* Susan Geigel, Director of Regulatory Compliance, Depository Trust and Clearing Corp
* Elaine Solomon, former Secretary at Bernard L Madoff Investment Securities, LLP
In addition to obtaining sworn testimony, the inspector general said he also interviewed 122 people, including the following:
* Bernard Madoff (interview conducted on June 17, 2009)
* Arthur Levitt, former SEC Chairman
* James Hedges, President, LJH Global Investments
* Laura Goldman, Investment Advisor, LSG Capital
* Ron Egalka, CEO, Rampart Investment Management
* Gregory Stahl, Chartered Financial Analyst, SEI Investments
* Paul Broder, Risk Manager, Renaissance Technologies Corp
* Henry Laufer, Chief Scientist, Renaissance Technologies Corp
* Nathaniel Simons, Portfolio Manager, the Meritage Fund
* John Guthery, Vice President, LPL Financial
* Steve Luparello, Vice Chairman, Financial Industry Regulatory Authority
(Reporting by Julie Vorman; Editing by Gary Hill) Keywords: MADOFF/PEOPLE (julie vorman@reuters com, +1 202 898 8467) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.