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: Jim Hamilton's World of Securities Regulation

By Jim Hamilton

Senate Banking Committee Requests Range of Documents from SEC Regarding the Madoff Firm

The Senate Banking Committee has requested a broad range of documents from the SEC as part of its examination of the reported fraud at the Bernard Madoff firm. In a letter to SEC Chair Christopher Cox, Committee Chair Chris Dodd and Ranking Member Richard Shelby asked for a complete list of SEC and FINRA examinations of the firm, the full examination reports, any deficiency letters, and correspondence from the Madoff firm related to the examination, and any resulting recommendations made to the Division of Enforcement. The committee also wants to see all internal SEC and FINRA e-mails referring to or in regards to Mr. Madoff and personnel of the firm, as well as all e-mails between SEC staff and personnel of the firm. The committee also requests any complaint letters from market participants regarding the firm or its principal that the SEC received before December 11, 2008.

The documents, which must be provided by January 22, 2009, are being requested in connection with the committee?s review of how federal regulators supervised and oversaw this firm and requested documents and other information about the case The Banking Committee is also examining the case to determine how so many people could have been deceived and how such a massive fraud could have gone undetected for so long, said Senator Dodd, who added that investors deserve an explanation and the responsible parties must be held accountable.

The committee also requests a history of SEC and FINRA enforcement actions against the firm and its personnel and all related enforcement documents, including transcripts of testimony. Also, all documents related to the SEC?s involvement in the Madoff??s firm determination to register as an investment adviser in 2006 must be produced, including all Forms ADV Parts I and II filed by the firm with the SEC. The Senators also want a list of positions held by Madoff and firm personnel through appointments by the SEC or FINRA and any documentation indicating how the appointments were made.

In complying with the request, the SEC must produce all responsive documents that are in its possession, custody or control, as well as SRO documents that the Commission has a legal right to obtain

In the letter to the SEC, the committee broadly defined document to mean any written recorded or graphic matter of any nature whatsoever regardless of how recorded and whether original or copy, as well as any attachments. The term also encompasses any graphic or oral records or representations of any kind, electronic records of any kind, however produced or reproduced, and whether preserved in writing, film, tape or disk, or videotape.

Also broadly defined is the phrase, documents in the SEC?s ``possession, custody, or control?? to mean documents whether held by the SEC or its agents or employees acting on the Commission?s behalf., as well as documents the SEC has a right to obtain, right to copy, or has access to; and documents placed in the temporary possession, custody or control of a third party.

Full post as published by Jim Hamilton's World of Securities Regulation on January 06, 2009 (boomark / email).