Wednesday, March 18, 2009
The DOJ and SEC are both widening the net of individuals being accused of conduct related to the Madoff matter. The latest complaints (SEC and DOJ) are against his accountant. What is particularly interesting here is the question of what are the responsibilities of an individual who may have access to financial matters of another. Is there an obligation to audit the information provided by a client? And will attorneys be required as "gatekeepers" to question information provided to them by their clients? This issue was one discussed at the recent ABA White Collar Crime Conference here.
The criminal complaint in this case charges securities fraud, investment advisor fraud, and false filings with the SEC. See Criminal Complaint - Download Madoff Accountant Criminal Complaint and SEC Complaint - Download Madoff Accountant SEC Complaint. But I keep thinking about Professor Coffee's piece here, and wondering who is really at fault, and isn't it odd to see the SEC bringing a complaint when their oversight may have fallen short.
(esp)(w/ a hat tip to Peter Henning)
Addendum - This is not an indictment, it is filing of a criminal complaint.