Friday, July 3, 2009
SEC Blew Chance to Expose Madoff in '04 | Stern's 'Bernie' Near Miss
In 2004 an SEC staff attorney in Compliance, Inspections and Examinations (who previously worked at the American Stock Exchange and understood complicated trading strategies) figured out that there was something wrong with Madoff and submitted a list of detailed questions to her supervisor to pursue the investigation. However, her supervisor told her to turn her attention to mutual funds; at that time the SEC was feeling the heat because the NY Attorney General's market-timing investigations made SEC look bad. Madoff inquiry went nowhere, and the SEC attorney left the agency in 2006.WPost, Staffer at SEC Had Warned Of Madoff Lawyer Raised Alarm, Then Was Pointed Elsewhere.
Did Madoff miss out on a chance to be a part of Howard Stern’s Radio show? A frequent guest on the show nearly escaped with a gold-plated recording of Madoff’s sentencing before she was arrested inside the courtroom.
Ivy Supersonic was caught recording the Court proceeding by Federal Protective Service officers and her “recording device” was confiscated, according to an order signed by Judge Denny Chin. Federal court rules bar the public from recording court proceedings. Device was actually a BlackBerry that belonged to Stern sidekick Robin Quivers, according to Silberstein. Ivy was removed from courtroom before Madoff was officially sentenced.
The Federal Protective Service has deleted the recording but made a copy of it “in the event Supersonic (real name: Silberstein) wishes to assert any rights thereto,” according to the court order. Silberstein, who describes herself as a fashion designer, entertainer, publicist, event planner and animated character designer, told NY Times that the recording “could be worth $1 million.” More at NYT Dealbook.
Posted by Stuart Rosenthal