Thursday, February 5, 2009

Former Director of the New York Branch of the SEC Invested With Madoff

In a remarkable single spaced 162 page document, filed with the U.S. Bankruptcy Court in Manhattan, Bernie Madoff's victims are listed---thousands of them, including many doctors and CPA's, and the baseball great, Sandy Koufax, part of a famed medical clinic, the Mayo Foundation, the consulting firm, McKinsey & Company, and Ira Sorkin, who formerly headed the New York branch of the SEC from 1984 to 1986 (Madoff's scam likely started in the 1970's, but was certainly in full operation during Sorkin's watch). Sorkin is currently Madoff's lawyer. Sorkin also appeared to supervise the account of Rosalie Sorkin, his late mother, who also had funds with Madoff. (Madoff sent his reports on Rosalie's "investments" to Ira's office.)

Now, explain to me again how expanding the SEC under the clueless Mary Schapiro is going to help fight fraud, when the semi-sophisticated Sorkin fell for Madoff rap, hook, line and wallet.

Madoff's rip off of Sorkin's money is an object lesson in the how bad guys get in to the heads of regulators.

As for Schapiro, word is out that it is the SEC lifers that are getting into her head. They have smooth talked her into everything but running the office from Honolulu beaches. But rest assured, somewhere in the dark, the bad guys are circling Schapiro. She'll never see them coming.

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