CREW: Securities and Exchange Commission (SEC): Regarding Reforms in Wake of Madoff Scandal (2/22/2010)

On February 22, 2010, Citizens for Responsibility and Ethics in Washington (CREW) filed a FOIA request with the Securities and Exchange Commission (SEC) seeking records demonstrating that the SEC has implemented reforms promised in the wake of the its failure to detect Bernie Madoff’s 65 billion dollar Ponzi Scheme. The SEC’s Inspector General released a series of reports in fall 2009 detailing the systemic breakdowns that allowed Madoff’s scheme to go undetected and recommending 58 reforms aimed at preventing future failures. These reforms seek to enhance communication within the SEC and between the SEC and other financial entities, improve the knowledge and skills of SEC investigators, streamline and strengthen the complaint process, and increase third party oversight of investment advisers. CREW seeks these documents to enable the public to understand the extent to which these important and necessary reforms have been implemented, and to ensure that the SEC is capable of effectively enforcing the nation’s securities laws.