Even though the holidays are a time for giving, Bernard Madoff’s sons did not appreciate the approximately $1 million worth of jewelry he sent to their Florida homes. Instead, the rebellious offspring notified their lawyers. And Madoff, architect of the elaborate ‘Ponzi scheme’ defrauding investors out of a possible $50 billion, was promptly accused of trying to make off with assets the SEC had only just frozen.
You’re probably thinking, where’s the drama in that? But the nepotism goes deep in this one. David Kotz, the SEC's inspector general, is investigating a possible lack of regulatory oversight at Madoff Securities in connection with the fact that Madoff's niece, a compliance officer at the firm, married a former SEC examinations official.
Later this week the Securities Investor Protection Corp and the SEC will discuss the process for reimbursing Madoff’s customers. So regardless of Madoff family feuds, investors will at least be a little closer to getting their money back.
By Janine Armin
Corporate Secretary magazine