SEC’s Madoff Failure Cited in Lawsuit
Just a quick note that the New York Times has written an article about two Madoff investors who are suing the SEC for not doing its job. It will likely be a tough case for the investors/plaintiffs to prevail upon because of the doctrine of sovereign immunity (i.e. government agencies cannot be sued for actions made pursuant to their legislative mandate). However, the inspector general’s Madoff report, which in no uncertain terms castigates the SEC, is likely to be the basis of many of the investors’ complaints.
Other related hedge fund law and Madoff stories: