When the SEC comes knocking they usually do so without giving the accused the benefit of the doubt. But that is for the little folks. If your name is Bernie Madoff and you run a $50 Billion ponzi scheme the SEC may just take your word for it that everything is up to snuff. In a civil lawsuit between Fairfax Financial v. SAC capital et al. discovery has uncorked documents that expose Cohen, Chanos, and many others to fraud and manipulation. Fact is, the SEC investigated these same individuals for this exact cause and excused them. But like Madoff, the SEC can be proven very wrong once the evidence is spilled out. Take a look at this article and read the e-mail evidence that the SEC failed to uncover or failed to act upon. Either way --- THEY FAILED. http://www.deepcapture.com/hedge-funds-reading-tomorrows-headlines-today/ here is a teaser: From: Mark Heiman Sent: December 11, 2002 11:06 PM To: James Chanos; Douglas Millett Subject: Fairfax I just got off the phone with ZBIâs insurance analyst, Michael Ting. He just talked to a new insurance analyst at Morgan Keegan, and apparently that analyst is about to initiate FFRX at âUnderperform,â with the thesis being that they are extremely under-reserved into the $3-$5 BN area. Also, there may be an article in Forbes or Fortune soon that will be similarly critical. Ting said he thought that analyst was one of the best P&C analysts he has talked to, and wanted to give us the heads-up, as well as hear how weâre coming at it.