These people are so stupid, they do not even know the duties of the SEC IG. They think he's the Chairman of the SEC. Ackerman of NY is chewing him out, wanting to know how he let such a fraud slip by. He wants to know how his constituent will pay his mortgage. Kotz, who has been extremely helpful, and has written quarterlies these morons obviously didn't read. The tipster is Harry Markopolous. THis is not a difficult name to pronounce, but no one in Congress could pronounce it, with one idiot saying "Harry Marco Polo", and I do not exaggerate. The SEC IG has been in office one year, and written several scathing reports that the SEC has ignored, or covered up. David Kotz is not our problem. Perhaps someone should ask the Congressmen and women why, when we sent them thousands of complaint letters about naked shorting, market manipulation, etc, they responded with letters WRITTEN BY THE SEC, AND ALL THE SAME. Maybe our problems lie there. Just maybe.
What is most interesting is that the Congressional Committee who was chewing out Kotz is more to blame in this than Kotz. The OIG only gets involved when there is a complaint of wrongdoing within the SEC. they do not see the daily market activities or the daily regulatory environments. Congress has oversight over the SEC and are expected to monitor their laws and their performances in managing the markets as defined by the Securities Acts. Congressman also receive the complaints of fraud that the OIG does not. The VERY type complaints the SEC received and failed to respond to. In 2003 I started an on-line petition called www.investigatethesec.com. investors signed this petition, Congress monitored this position, and on the site we published the responses Congress received when they questioned the SEC on subject matter. Investors tried to engage Congress and like this case before us, congress failed as much as the SEC did.
I wouldn't be surprised if Madoff wrote the SEC himself , ranting like a lunatic, so the SEC could claim they got all kinds of nutty letters.
They used to reply with letters the SEC gave them. And they'd be very rudimentary at the beginning. One explained to me what short selling was, and how naked short selling worked. But watching that yesterday..... the level of intelligence was extremely low. Ackerman from NY, a real jerk. Mel Watt from NC......... just, just stupid. Until we start demanding better, this is what we get. Small town government running a formerly great Nation.
Naked shorting is the least of the problems. In my opinion the SEC has done everything they can to protect the guilty at the banks. The SEC seems, in fact, to think that the most important job they have is to punish short sellers and let criminals and idiots continue to ruin good American companies by their terrible and short sighted leadership.
NAKED SHORTING is "THE" problem. Aguirre has said, that's when he got fired. When he got to Naked Shorting, they canned him. Everything else is a manifestation of such. NSS has been going on for ......... well, you'll read about it soon. You couldn't be farther from the truth.
Tell me, what does having the SHO List as a means of enforcement tell you about enforcement at the SEC. Maybe underfunding or under interested ...the voice mail of enforcement.