Many fruitless probes into Madoff

[January 27, 2009]  (AP) Starting in 1992, federal regulators on many occasions examined various aspects of Bernard Madoff's business operations, but they never turned up the alleged $50 billion Ponzi scheme that led to Madoff's arrest in mid-December.

The history of regulatory failure in the Madoff scandal:

1992

Securities and Exchange Commission

Madoff's name comes up in a probe of Florida accountants who allegedly sold unregistered securities.

1999

SEC examiners review trading practices at Madoff's investment advisory firm.

2001

The SEC's Boston office receives information from securities industry executive Harry Markopolos raising questions about the steady stock market returns of Madoff's firm.

2004

The SEC looks into whether Madoff's firm engaged in improper trading practices.

2005

The SEC interviews Madoff and members of his family, finding no improper trading practices.

2005

The National Association of Securities Dealers, the securities industry's self-policing organization, finds no improper trading practices by Madoff's brokerage operation.

2005

SEC investigators meet with Markopolos, who alleges that Madoff's firm is "the world's largest Ponzi scheme."

2006

An SEC enforcement investigation finds that Madoff and one of his clients misled regulators. As a result, Madoff agrees to register as an investment adviser.

2007

The Financial Industry Regulatory Authority, the successor organization to the NASD, examines Madoff's firm. No regulatory action results.

[Associated Press]

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