SEC officials testifying at a Senate Banking Committee hearing pledged to do more to investigate Ponzi schemes.
SEC Inspector General David Kotz talked about his damning
Markopolos praised the inspector general's report, but he said that Congress should hold government officials accountable when they overlook schemes like Madoffs. Putting agency heads in prison for willful blindness, malfeasance and corruption seems like its long overdue, he said, according to Reuters.
Other SEC officials who were called to testify, including John Walsh, acting director of the Office of Compliance Inspections and Examinations, were apologetic about the agencys failures. He said the SEC now plans to train more agents to recognize Ponzi schemes.
Indeed, on Tuesday, the agency charged a Brooklyn money manager, Philip G. Barry, with running a $40 million Ponzi scheme in which he allegedly spent his clients money on real estate, a pornography mail order business and other interests. The timing of the charges was likely not coincidental.