The Securities and Exchange Commission may create a “fraud college” to train staff in detecting market abuses after the agency failed to stop Bernard Madoff’s $65 billion Ponzi scheme, Chairman Mary Schapiro said.
“The fraud college concept is a great one,” Schapiro said today at a joint meeting with the Commodity Futures Trading Commission in Washington. Coordinating fraud-detection training with the CFTC “would be particularly valuable,” she said.
The SEC is already training more than 300 examiners on ways to spot fraud after Madoff eluded the SEC for more than 16 years, Schapiro said in response to a suggestion from John Coffee, a securities law professor at Columbia University. SEC Inspector General H. David Kotz yesterday released a summary of a nine-month investigation that showed incompetence and inexperience helped Madoff avoid detection.
The SEC is revamping its enforcement division after lawmakers and investors criticized it for missing Madoff’s scheme. Robert Khuzami, SEC enforcement director, last month announced he would form five specialty units focusing on cases in asset management, structured products, municipal securities, foreign corrupt practices and market abuse.
Richard Owens, an attorney at Latham & Watkins, said the agencies need to develop a joint set of standards that outline how the commissions will decide what kinds of enforcement cases they will bring.
(Source: Bloomberg.com)
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5 Responses
as opposed to law and business schools?????
or o learn the ropes
is madoff going to lecture there?
What were the SECOND examiners skilled at until now? Eating doughnuts? The examiners go in and look for fraud since 1901. You mean until now they were not trained to spot fraud? What were they trained to spot all this time? What were they examining wherever they went? The flavor of the doughnuts they were eating?
Here’s an opportunity for madof to get out of prison,he should offer his services how to detect ponzi scammers. Like the famous scammer called “catch me if you can”
The fraud college will most likely be a college that is a fraud.