From the Washington Post, we receive a remarkable but somewhat unsurprising revelation:
Genevievette Walker-Lightfoot, a lawyer with the U.S. Securities and Exchange Commission, raised the alarm about Bernie Madoff’s financial management firm way back in 2004. She noticed accounting irregularities and drew up a list of questions she wanted to ask Madoff, including several that apparently drove to the heart of the largest Ponzi scheme in world history.
She then brought these questions to a supervisor, who pocket-vetoed them. At the time, the SEC was being pressured to investigate mutual funds — a “different matter” altogether, apparently — and Madoff was never pursued.
We might chalk the entire thing up to the idiotic Federal government and its woefully inadequate priorities, but The Washington Post doesn’t stop there. Apparently, one of Walker-Lightfoot’s supervisors was Eric Swanson, assistant director of the SEC.
He later married Bernie Madoff’s niece.
As they say down at the bank, “You do the math.”
Swanson is no longer with the SEC and is currently being investigated by the SEC’s inspector general regarding the matter. Here’s a link to the WashPost article.