Pots, kettles, houses, stones-- you know the drill by now:
A critical audit by the Government Accountability Office (GAO) said the SEC has failed to maintain controls in three key areas - security of its computer system, handling of the cash paid in disgorgement and penalties, and keeping track of equipment and assets.
Even with [chief Chris] Cox's crackdown, the GAO said the SEC still isn't handling its cash correctly. As an example, it said $21 million paid as a disgorgement from an unidentified firm wasn't even recorded on the books, making it difficult to know if penalties are paid or ever collected.
[insert cackles from every hedge fund manager in NY, Greenwich, etc. right about now]
GAO AUDIT: SEC HAS PROBLEMS [NY Post]