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FINRA Claims No Jurisdiction over Madoff Fraud?

By Mark H. Astarita, Esq.

FINRA defends its role in Madoff scandal | Reuters"None of the fraudulent activities that have been alleged deal with the activities of the broker-dealer or come under the jurisdiction of FINRA." Reuters provides this quote which it claims comes from an email from FINRA. Interesting timing, on the eve of Mary Shapiro's confirmation hearings.Reuters is reporting that there is an email from FINRA floating around. There is nothing at FINRA's web site. I have never seen, nor heard, of FINRA or its predecessor, the NASD, sending out press releases by emails.So, I don't have the email, but apparently Reuters does, and the Financial Times does. FT has the story completely backwards, claiming that there is a gap in regulatory coverage, which allowed the fraud to go on...continue to full post

Full post as published by SECLaw.com on January 15, 2009 (boomark / email).