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H. David Kotz, the SEC's inspector general, said the Madoff scandal should force the SEC to re-evaluate its enforcement division and spur "overarching and comprehensive" reforms. He said that the Madoff scandal itself could be symptomatic of a larger problem within the SEC, stating that the investigation should go beyond individuals involved in the current uproar. "It is my view that at the end of these investigative efforts, there needs to be more than just the potential identification of individuals who may have engaged in inappropriate behavior or potentially failed to follow-up appropriately on complaints, but rather an attempt to provide the Commission with concrete and specific recommendations as appropriate to ensure that the SEC has sufficient systems and resources to enable it to respond appropriately and effectively to complaints and detect fraud through its examinations and inspections," Kotz said. During his testimony, SIPC President Stephen Harbeck said that the trustee in charge of the liquidation of Bernard L. Madoff Investment Securities LLC, Irving Picard, has determined that some $830 million in liquid assets could be distributed to Madoff investors. "The trustee and SIPC will be aggressive in their pursuit of such recoveries" from the alleged $50 billion fraud, Harbeck said. He added that more than 8,000 claim forms have been mailed to Madoff's investors. In addition, a notice was published in major newspapers telling people how to apply for claims. One of those investors, Allan Goldstein came before the panel calling himself a "human face on this tragedy." The businessman and Madoff investor told the committee that he came before the panel a "broken man." He said regulators "failed us." "We had considered Madoff Securities not as a get-rich-quick scheme, but as a buffer against risk," Goldstein said. "We entrusted Mr. Madoff with all we had, and now everything that I worked for over a 50-year career is gone." The 76-year-old Brooklynite and textile merchant gave Madoff $2.5 million in savings. Over the years, Madoff had reported that Goldstein's invested amount had nearly doubled. But after the scandal broke, Goldstein said he was forced to cash in his life insurance policies to pay his mortgage and is in the process of selling his home. - Donna Block CategoriesComments
From: frustrated investor,
Madoff should be given such a punishment that next time anyone remotely thinks of commiting such a fraud, he shivers at the mere thought of being caught. Madoff should be given life imprisonment in a maximum security prison. If not, here is what the next fraudulent individual will think. Well, if I can steal, live rich for 20 yrs and then get 5 years jail in a country club environment, I WILL STEAL, what a GREAT deal!!! Madoff created a crime that is worse than commiting a murder. Atleast in a murder the end of life happens in a fraction of a second and the pain is gone. Madoff has created living dead bodies, human beings that do not want to live because they are destroyed, their life is destroyed and everything that they had worked hard for during their life is destroyed. But they are live and breathing. It is similar to cutting someone's hands, fingers, legs, ears...but letting them breath. And Madoff gets 5 yr sentence in a country club style prison....is US BLIND!!!
Posted on:
January 6, 2009 3:20 PM
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While alleged fraudster Bernard L. Madoff was pleading with a judge in New York not to revoke his bail Monday, the Securities and Exchange Commission was feeling the wrath of Capitol Hill lawmakers on the House Financial Services Committee, which was holding hearings in to the failure of government regulators to identify and stop Madoff's alleged $50 billion Ponzi scheme.
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This is truly the most despicable of crimes. Trust and confidence in your fellow man, gone, evaporated.
But I do have a question regarding Mr. Goldstein. $2.5M invested. $4.2M portfolio value as of November 2008. AND a $5,900/month mortgage payment? From the testimony, it seems that after receiving good consistent returns, Mr. Goldstein mortgaged his home to put more money with Bernie. Borrowing money to invest? Maybe ok for some people, but not for me.