The latest news coming from the Bernard Madoff scandal throws more light on the SEC’s total failure as an agency.  It was disclosed today that Bernard L. Madoff made no stock trades during the past 13 years.  While heading up the greatest Ponzi scheme in history that bit of news should come as no great surprise.

However, for those of us who spent hours listening to Harry Markopolos testify before Congressional committees, we are more certain than ever that the SEC must have been spending nights in the Madoff penthouse.  When asked how the SEC could have better checked on the Madoff allegations early on, Markopolos clearly stated that if the SEC had requested Madoff’s trading tickets they (the SEC) could have determined that the trades did not match up with the statements sent to the Madoff investors.

Today the first step Markopolos suggested hit the SEC between the eyes like a heat seeking RPG.  If the SEC had done even the most basic and preliminary step, they would not have only discovered that Bernie’s trades did not match up with the statements.  Bernie did no trades for over 13 years. 

Perhaps that bit of news is one of the reasons Linda Thomson, former head of the SEC enforcement section, resigned a couple of weeks ago.  Perhaps, Ms. Thomson was filing her nails or scheduling a pedicure instead of working on enforcement issues. 

Additionally, as Madoff employees begin to speak it has been learned that it is impossible for anyone to continue to believe that Bernie acted alone.  Even if Bernard Madoff had been in the office everyday, seven days a week, he could not have completed the charade in solo.  Today we learned that Madoff seldom appeared at the office.  In fact, according to some records, Madoff was aboard his yacht, traveling the Mediterranean, or hibernating in one of his houses most of the years.  It was reported by at the very least one employee who said that Madoff appeared in the office three or four times a year.

Someone had to be issuing the statements to the clients.  Someone had to be concocting the day to day process of the scheme.  The Madoff Ponzi scheme was a delicate balance of manuervering and issuing monthly statements.  And, Bernie was not even present?

Well, the tide is ebbing on Bernie and company.  And, sooner or later others will be caught in the net.  Tonight, Bernie is in his penthouse, probably sitting in front of his computer… offering no help to those who are investigating this scheme.  Bernie was not jailed so he could assist investigators.  To date, word is that Bernie is doing nothing to assist.  Instead, we can only guess that Bernie has become preoccupied with the game of Doom.