The Limestone Cops — Tips on Madoff Red Flags Never Escalated at SEC

It’s hard to believe that with all the resources poured into government following the adoption of Sarbanes Oxley Act in 2002, the escalation process in the SEC failed in the Madoff case. New reports show that junior SEC staff neglected to involve more seasoned enforcement officers and failed to stop what ended up to be a $65 billion Ponzi scheme. See SEC chiefs in dark as Madoff evaded junior staff.

The cost to all the investors has been devastating and the internal escalation process in the agency needs signicant remediation.