SEC Not Firing Anyone for Missing Madoff's Scheme

Eight employees got disciplined, however
By John Johnson,  Newser Staff
Posted Nov 11, 2011 2:12 PM CST
SEC Not Firing Anyone for Missing Madoff's Scheme
Bernie Madoff in a 2009 file photo.   (AP Photo/Stuart Ramson, file)

SEC staffers managed to miss Bernie Madoff's Ponzi scheme for more than a decade despite numerous warnings, but that is apparently not a fireable offense. The agency disciplined eight employees involved in the case, with the most severe punishment being a 30-day suspension coupled with a demotion, reports the Washington Post. The others got a range of lesser penalties, including pay cuts and, in one case, only a "counseling memo."

SEC chief Mary Schapiro rejected the advice of an outside law firm who recommended that one of the staffers be fired. That would have had "an adverse impact on the agency’s work,” said an SEC spokesman. A ninth person resigned. Click to catch up on Ruth Madoff's recent media tour here and here. (Read more Bernard Madoff stories.)

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