Cox admits SEC failure to detect Madoff fraud
SEC to launch an inquiry into its failure to act on warnings of Madoff's wrongdoing in 1999
"I am gravely concerned by the apparent multiple failures over at least a decade to thoroughly investigate these allegations or at any point to seek formal authority to pursue them," says Cox.
The supervisor has announced it will launch an internal inquiry, led by SEC inspector-general David Kotz, into the past allegations against Madoff and his investment company, and why they were not judged credible enough to merit further examination at the time.
Madoff is charged with running a $50 billion fraud in one of the biggest cases in Wall Street history.
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