SEC Sued Over Failure To Disclose Post-Madoff Reforms


The Securities and Exchange Commission is being sued over its failure to respond to Freedom of Information Act requests for information about what reforms, if any, it has undertaken since it failed to detect Bernard Madoff’s multibillion fraud.

The government watchdog Citizens for Ethics and Responsibility in Washington announced the lawsuit today, saying that the SEC has yet to reply to CREW’s October 2009 information request.Last month, a different good-government group, the Project On Government Oversight, did manage to get some Madoff-related records out of the SEC. As we reported at the time, those documents showed that the agency has yet to institute many of the reforms recommended by its internal watchdog after the Madoff scandal.

Regular TPMMuckraker readers will remember that we’ve been closely following just what went wrong with the SEC’s oversight of Madoff and what the commission plans to do about it.