Lawsuit Blames SEC For Failing To Catch Madoff

NEW YORK (AP) — A charitable foundation run by a wealthy real estate magnate has sued the Securities and Exchange Commission, blaming the agency for failing to catch Bernard Madoff’s fraud before it lost about $19 million.

The lawsuit filed in a New York City federal court by The Litwin Foundation Inc. on Friday accused the SEC of blowing “countless opportunities” to stop Madoff over a 16-year period. An SEC spokesman says the agency had no comment. Several other lawsuits have also blamed the SEC for failing to stop Madoff.

The foundation was formed by Leonard Litwin, who was once listed on the Forbes magazine’s list of America’s billionaires.

The 72-year-old Madoff is serving a 150-year prison sentence after pleading guilty to fraud charges last year.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

  • jeffp26

    While this sounds great, the courts will throw the suit out. The SEC is both inept and virtually untouchable, except by the whitehouse and our brilliant senators, who obviously still don’t have a clue, since they appointed Mary “protect the industry at all costs” Shapira to run it.

  • Tom

    Of course. Period. My only regret is there are no sentencing provisions in civil actions.

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