Posted on 01/07/2009 3:55:03 AM PST by CutePuppy
The Securities and Exchange Commission's New York watchdog, under fire for failing to uncover Bernard Madoff's alleged $50 billion Ponzi scheme - despite a dead-on tip by a whistleblower - yesterday tearfully defended herself, arguing that she and the agency did the best job possible.
"Why are you taking a mid-level staff person and making me responsible for the failure of the American economy?" an upset Meaghan Cheung, with eyes tearing up, told The Post.
"I worked very hard for 10 years to make a career, and a reputation, and that has been destroyed in a month," said Cheung, who was the SEC's branch chief of the New York enforcement division during that unit's earlier probe of Madoff's brokerage business.
The 37-year-old has been singled out by whistleblower Harry Markopolos as the woman who failed to detect the scam despite his lengthy warnings. It was Cheung who signed off on a 2006 SEC investigation that effectively gave Madoff the all clear.
She said, "I was shocked" to learn last month that Madoff had been charged with - and confessed to - operating a massive Ponzi scheme at his Manhattan firm that swindled thousands of investors.
"I think it's a tragedy," said the married mother of two, who is a graduate of Yale University and Fordham University Law School.
But when asked if she would have done anything differently in her Madoff probe - which ended with "no evidence of fraud" - she demurred.
"I can't answer that," said Cheung, who left the SEC in September for personal reasons unrelated to Madoff. "If someone provides you with the wrong set of books, I don't know how you find the real books."
.....
"Cheung, branch chief in New York, actually investigated [Markopolos' claims] but with no result that I am aware of..."
(Excerpt) Read more at nypost.com ...
Just bring in Frank Abengale Jr.
Interesting. It is fascinating how much professions and training reinforce and reflect personalities and talents. I too am sorry that Sarah didn’t get in as vice president and for who we have, but the thought of McCain being awarded for his senatorial and campaign positions was a tough one to take, too.
Hey, everyone, lay off this dedicated hyper-competent govt. bureaucrat — at least we know that her liberal heart is in the right place, in love with the Obamanation.
I think she should be the new head of the SEC. Oh, that slot’s already taken? Well maybe she can be on Obama’s WH staff.
Are federal employees allowed to donate to political campaigns? Isn’t this a violation of the Hatch Act?
Hatch Act for Federal Employees
FWIW, I think she's okay on that, but I'm no legal eagle.
What I'm really interested in are her dealings in the Madoff matter and any pols who may have been involved in her decision-making.
BTTT for later.
The laundering money corridor between New York City and Washington DC needs to be destroyed.
“The laundering money corridor between New York City and Washington DC needs to be destroyed....”
Hah!!The opposite just occurred this fall. Effectively the investment banks and the US Treasury were synthesized.
Here's why that matters. Three SEC enforcement staffers -- Assistant Regional Director Doria Bachenheimer, Branch Chief Meaghan Cheung, and Staff Attorney Simona Suh -- were listed on the "closing document" for the 2006-07 inquiry into Madoff, which has emerged as exhibit A in the case against the agency. According to an SEC enforcement source, only Suh, the most junior of the three, remains at the agency.
Have to wonder if Bachenheimer and Cheung had any wind of Madoff's imminent demise and decided to be "ex" SEC staff before it all hit the fan. Cheung only just left in September --- supposedly b/c she was just so eager to stay at home with her kids now. Normally that would be admirable for any parent of course, but one wonders how many SEC Branch Chiefs suddenly discover a preference to be homemakers?
Would also like to find out what happened with Bachenheimer and where she might be now.....
IGs have subpena power for records, not witness testimony. I think that is what he meant.
http://www.stockinvestmentfraud.com/pdf/detail.cfm?id=216557&article=TRUE
Yes, that’s what he said.
Ah, so it sounds as though both Bachenheimer and Cheung both left the SEC since August, verrrrry interesting.
Could be coincidence, or could be they knew something would be hitting the fan.
Actually, it was sarcasm... so hard to convey sarcasm over the internet.
But can you name a professional woman, with that level of responsibility, who does not rely on men to get the job done correctly?
Indeed, emotions are invisible over the web. Which makes email all the more dangerous too.
But thanks for noting it.
Right, now they can't be subpoenaed for testimony by IG.
Could be coincidence, or could be they knew something would be hitting the fan.
Could be... ;-)
“So, if they show her bad books...”
True enough on one level. But IIRC, Madoff didn’t make any trades. How hard would that be to find ?
Me wonders if any people in the SEC received any mysterious cash “gifts.”
One of the best reads in quite awhile. Spot on.
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