During a 2006 examination, an SEC staffer asked Bernie Madoff for information. Madoff replied that he had already provided it to a top agency official. To which the SEC-er responded: "It's a big organization, we don't talk to each other."
That's according to Madoff's testimony to SEC investigators. The agency's inspector general's office has just released documents that were part of its probe into its failures on the Madoff affair. And they further the picture of a regulator at which the right hand didn't know what the left was doing, and which depended on inexperienced and over-matched agents to sniff out complex financial frauds like Madoff's.
You can see all the documents here. And you can see Madoff's testimony here.
Let us know in comments about anything else that jumps out.

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hawaiian
October 30, 2009 10:41 PM
Just pretend that it was Congressman Madoff?!?
If he where dealing carbon credits he would have the blessing of the Obaama Whitehouse. His investors would be on the green mechine bandwagon and still looking down from is Park Avenue Penthouse sipping out of long stem glasses with Biden and Conyers, Laughing at all the cridders rushing around down below.
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JohnW1141
October 31, 2009 8:28 AM
When Bush appointed Repug Congressman Chris Cox to head the SEC Wall Street and Bernie Madoff were dancing in the streets.
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bellesouth
October 31, 2009 1:38 PM
Do they mention the guy who was constantly trying to get the SEC to look into Madoff?
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palmbeachmaven
October 31, 2009 5:34 PM
Exhibit 456 and 453 - On 2/28/06, Eric Swanson was clearly discussing the SEC's investigation with Shana Madoff and making inquiries on her behalf. Tipping off Bernie that he was being investigated for running a Ponzi scheme would have allowed him to tailor his responses to inquiries accordingly.
At the time, Shana and Eric were in the process of becoming romantically involved.
If Shana Madoff had one of those 245 "special" Madoff accounts set up for family and friends that had unusually high returns of 100% or more(see Looby report), when did she tell Swanson about it?
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