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Government United States Politics

SEC Hit With Data Destruction Complaint 148

DMandPenfold writes "The Securities and Exchange Commission (SEC), the US financial regulator, has been accused of destroying thousands of data files on high profile inquiries including an early-stage investigation into convicted Ponzi scheme fraudster Bernard Madoff. The allegations, raised by former SEC employee Darcy Flynn, have prompted the US Senate Judiciary Committee to write to SEC chairwoman Mary Schapiro to demand an immediate explanation. The SEC exists to set a tough example on corporate governance, and it fines banks heavily for both lax practice and deliberate malpractice. Questions over any involvement it may have in sensitive document destruction are not likely to sit comfortably with some in the industry. The SEC insists it has kept records in accordance with the law on its computer system."
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SEC Hit With Data Destruction Complaint

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  • by paulsnx2 ( 453081 ) on Thursday August 25, 2011 @11:33AM (#37207036)
    ... That is what has happened to every other whistle blower under this administration. And the worse the corruption exposed, the worse the sentence. If the SEC is guilty of total fraud sheltering billions of dollars in Wall Street theft, then expect the DOJ to go for the death sentence for Darcy Flynn.
  • Re: US Ponzi (Score:5, Insightful)

    by RingDev ( 879105 ) on Thursday August 25, 2011 @12:04PM (#37207490) Homepage Journal

    S&P called it because a political party in the US was prepaired to default on our debt.

    If violating our Constitution had not been presented as a "valid" option by the Tea Party, the S&P rating never would have changed.

    As soon as the Tea Party forced the issue and started pissing on the very document they claim to love and defend, the only way to prevent the down grade was to create a meaningful adjustment of spending and revenue. And again, thanks to the Tea Party, the outcome of that came up short.

    And it isn't a "Risky investment". It's AA rated. It puts us on par with utility companies and other extremely stable business sectors. The point of AAA ratings is that they are for entities that are legally require to pay out on debts. The US is still constitutionally required to pay out on debts, so by the standard we should still be AAA. But far right ideologs like Bachman and Perry keep spewing crap that makes the world think that we could actually default dispite our constitution.

    Some of the blaim is Obama's with out a doubt, he's been playing the gentle leader roll ever since the GOP coined the "Ramming it down our throats" talking point in the year long insurance reform debate.

  • by sjames ( 1099 ) on Thursday August 25, 2011 @03:17PM (#37210670) Homepage Journal

    Actually, they have a mandate to retain all of those documents for 25 years with no exceptions. They have shredded documents exactly matching the types described in their agreement with the NARA.

    The more you dig, the harder it is to not see malice. The upper managers at the SEC regularly come from and then return to the boards of exactly the institutions they are regulating. Those lateral moves often happen after a shred-fest.

Life in the state of nature is solitary, poor, nasty, brutish, and short. - Thomas Hobbes, Leviathan