Madoff Has Friends in High Places

Wall Street and America's top cops powerless

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    NEWSLETTERS

    Bernard Madoff, 70, was arrested last Thursday in what the Securities and Exchange Commission is calling one of the biggest Ponzi schemes in history.

    The Bernard Madoff saga just gets uglier and more convoluted every day.
    Yesterday, SEC chief Christopher Cox said in a statement that he was "gravely concerned by the apparent multiple failures … to thoroughly investigate these allegations."

    It looks like that failure may have stemmed from a glaring conflict of interest. Namely, that Madoff's niece, Shana Madoff, is married to one Eric Swanson, who worked at the SEC as a senior inspections and examinations supervisor until 2006, reports the Wall Street Journal.
    So despite numerous red flags that were raised about Madoff's financial shenanigans, which led to the loss of $50 billion in losses for investors, the SEC turned a blind eye.
    Worse still, the nation's chief law enforcement official, Attorney General Mike Mukasey, doesn't want anything to do with bringing Madoff to justice.
    Mukasey has recused himself from the case because his son Marc is representing Madoff firm crony Frank DiPascali, reports the New York Times.
    Not surprisingly, no one outside of Madoff's wife and brothers would vouch for him, so instead of being out on bond, Madoff is under house arrest.

    Sadly, for scum like Madoff, "house arrest" means sitting in the lap of luxury a $7 million Park Avenue palace.