Wednesday, October 14, 2009
The New York Times reports that two Madoff victims have filed a complaint in federal court in S.D.N.Y. against the SEC for its failure to uncover the Madoff scheme, despite numerous tips that should have aroused its suspicion. The complaint alleges that the doctrine of sovereign immunity should not apply to shield the agency from the consequences of its "serial, gross negligence." NYT, Suit Accuses S.E.C. of Failing to Detect Madoff Scheme.