SEC Knew About Madoff Nine Years Ago; Did Nothing

The New York Times reports that plausible complaints of fraud had been issued to the SEC against prominent (accused) Ponzi scheme perpetuator Bernard L. Madoff (who's now under house arrest) as many as nine years ago, but were never seriously investigated. Now that individuals and organizations (including the Robert I. Lappin Foundation, which has shut down completely) are out at least $20 and possibly as much as $50 billion, the Securities and Exchange Commission is starting to take things seriously. Chairman Christopher Cox said, “I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations or at any point to seek formal authority to pursue them." We're a little concerned, too, but more for the folks who lost their shirts. Fortunately, if they can find 40 extra bucks, they can buy new ones. (Wonder who the proceeds of those go to?)