WASHINGTON (AP) – Until Bernie Madoff’s scheme came crashing down and the biggest Ponzi scheme in Wall Street’s history came to light, he appeared as a charming wizard with a Midas touch. His investment advisory business attracted a devoted legion of clients, including A-list celebrities, rewarding them with steady returns that defied market fluctuations.
But he not only conned investors, he seduced regulators. The Securities and Exchange Commission esteemed him as a Nasdaq Stock Market chairman and prominent Wall Street figure – and failed to detect his fraudulent scheme despite receiving warnings and credible complaints over 10 years. After it was exposed in December 2008, a shaken SEC scrambled to put controls in place to prevent such episodes from recurring and uncover them early.
Madoff was sentenced to 150 years in jail for his crimes. He died behind bars Wednesday at age 82.
A look at federal regulators’ actions with regard to Madoff before his conduct became publicly known and afterward with an eye to prevention:
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