SEC’s Office of Compliance Inspections and Examinations Gets a Review

The SEC’s Division of Enforcement was not alone in getting a report from the SEC’s Inspector General: Improvements Needed Within the SEC’s Division of Enforcement. The Office of Compliance Inspections and Examinations also got a review from the Inspector General: Review and Analysis of OCIE Examinations of Bernard L. Madoff Investment Securities, LLC. For this … Read more »

Improvements Needed Within the SEC’s Division of Enforcement

The SEC’s Inspector General, H. David Kotz, released his most recent report: Program Improvements Needed Within the SEC’s Division of Enforcement. The report is sort of a follow-up to the Madoff Report. The Office of the Inspector General conducted a review “to identify systemic issues that would prevent Enforcement from accomplishing its mission to enforce … Read more »

Ex-Madoff Finance Chief Frank DiPascali Pleads Guilty

Frank DiPascali, the finance chief at Bernard Madoff’s investment advisory business, pleaded guilty to helping his boss carry out a $65 billion Ponzi scheme. DiPascali pleaded guilty to 10 counts, including conspiracy, fraud and money laundering. DiPascali has been cooperating with prosecutors, explaining how he and others helped Madoff defraud investors by using money from … Read more »

The Rise in Financial Crime in America

The Economist is reporting that there were over 730,000 counts of suspected financial wrongoing recorded in America last year. Financial institutions filed nearly 13% more reports of fraud compared with 2007. The number of mortgage frauds rose by 23% to almost 65,000. This poses the classic compliance conundrum: Is there more fraud occurring, or is … Read more »

Corporate Compliance Scam Comes to North Carolina

A vigilant reader in North Carolina received an “Annual Minutes Requirement Statement” from Corporate Compliance Services. We have seen a similar scam in California, Colorado, Florida, Georgia, Indiana, Illinois, Massachusetts, Montana, New York, Ohio, and Texas. The very official document cites North Carolina General Statute §55-16-01(a) with the requirement that a corporation must keep a … Read more »

Stanford Arrested

We saw it coming. It was like OJ in the Bronco. Last night, Sir R. Allen Stanford stepped out of his girlfriend’s house in Virginia, walked over the the FBI car parked out front and asked if they had an arrest warrant. They did. The grand jury had released its indictment. The surprise was who … Read more »