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SEC Ignored Credible Tips About Madoff, Chief Says
SEC chief Christopher Cox has ordered an internal review.
(Brendan Smialowski - Bloomberg News)
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Simply generating monthly account statements for all of his clients would have required an extensive effort on Madoff's part, said Laurie S. Holtz, a forensic accountant who has investigated similar schemes.
"That isn't going to be done by Mr. Madoff sitting at home with a PC," Holtz said. "There's got to be a whole retinue of support to make this happen."
The attorney general of Massachusetts subpoenaed documents yesterday from Bernard Madoff's brother, Peter Madoff, who served as chief compliance officer.
Madoff is scheduled to appear in a Manhattan court today for a bail hearing. He was released last week on a personal recognizance bond of $10 million. Meanwhile, a team of people responsible for liquidating Madoff's business arrived at his Manhattan office yesterday and joined federal investigators in beginning to comb the records.
"It's going to take a tremendous amount of time to unwind and separate fact from fiction," said Stephen Harbeck, president and chief executive of the Securities Investor Protection Corp., which has a federal mandate to recover funds for clients of failed brokerages.
Staff writer Amit Paley and staff researcher Julie Tate contributed to this report.
