Woe to Meaghan Cheung, the "mid-level SEC employee" in the New York office tagged as the girl who ignored the Made-off scandal, despite intense prompting by tipster Markopolos who leveled this rebuke:
Cheung, branch chief in New York, actually investigated [Markopolos' claims] but with no result that I am aware of. In my conversations with her, I did not believe that she had the derivatives or mathematical background to understand the violation
Indeed, her protestations that she is being scapegoated for "the falling economy" would have some appeal, if Markopolos' claims that she was out of her depth didn't seem to hit so close to the mark. But pure incompetence isn't a crime. Is it?
Still, it would be one thing if a clever scam had simply been overlooked. But with Markopolos leading the SEC horse right to the water, urging a drink or two, and with analysis as basic as looking at the options volumes required to effectuate Made-off's supposed strategy, it gets a bit more difficult to be moved by those tears.
All the SEC will ever be good for is halting frauds already seriously in progress or delivering punishment after the fact. When it can't even accomplish this, what good is it?
The SEC Watchdog Who Missed Madoff [The New York Post]