SEC report shows repeated bungling of Madoff probe

September 5, 2009 07:00

The official at the Securities and Exchange Commission who later would marry Bernard Madoff's niece told investigators this year that if he had carefully reviewed a complaint about the disgraced financier's business, he would have investigated more deeply, a new report shows. The admission by Eric Swanson, who was an SEC attorney and inspections official during a 2003-04 exam of Madoff's operations, is among a trove of revelations in the report by SEC inspector general David Kotz. Swanson told a colleague in April 2004 that the inspection of Madoff's business was ongoing, after the exam team had stopped working on it, according to the report. It said Swanson recently explained that an inspection would be considered ongoing even if it were put on hold. Kotz's investigation found no evidence that the relationship between Swanson and Madoff's niece, Shana, who married in 2007, influenced the SEC exams of Madoff.

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