The Securities And Exchange Commission's Resident Tranny Porn Lover May Be In Trubs Again

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Last February, an unnamed Securities and Exchange Commission worker got in a bit of trouble with his employer for checking out a little porn while on the job. The guy made at least 1,800 logged attempts to check out some sites that included www.ladyboyx.com, www.ladyboyjuice.com, www.trannytit.com, and www.anal-sins.com, which, he admitted, “were kind of distraction per se.” But he had a good reason which is that he had a lot of work to do, and it was stressing him out.

Now it seems that the tranny tits were in fact not just "kind of" a distraction, "per se," but a "huge ass" distraction. In SEC Inspector General David Kotz's latest semi-annual report, released Monday, it is disclosed that the watchdog is close to wrapping up an investigation into whether or not "a senior-level official" directed staff not to go after red flags in an investment adviser case in order to cover his own hide, which had previously investigated the firm and failed to uncover the fraud, possibly as a result of spending too much time surfing for lady boy juice at work.

Complaint of Failure of an SEC Regional Office to Uncover Fraud and Inappropriate Conduct on the Part of a Senior-Level Official

In March 2010, the OIG received an anonymous complaint alleging that a senior-level official in the investment adviser examination program at an SEC Regional Office instructed examiners to not pursue certain “red flags” in an examination in which the SEC staff uncovered a massive fraud. The complaint further alleged that the senior official’s apparent motive for these instructions was that he either performed, or was materially involved in directing, the most recent prior examination of the firm that did not uncover the fraud, although it existed at the time. In addition, the complaint alleged that a hostile work environment existed in the Regional Office as a result of management’s failure to aggressively discipline the senior official after a previous OIG investigation revealed that the senior official had viewed pornographic images from an SEC computer.

During the reporting period, the OIG obtained and reviewed the e-mail records of 11 former and current SEC employees, and searched over 68,000 e-mails. We also obtained and reviewed thousands of pages of pertinent documents, including the examination files for three examinations conducted of the firm. The OIG also took the testimony of 17 witnesses who had knowledge of the facts and circumstances surrounding the allegations in the complaint. The OIG has nearly completed its investigatory work and intends to issue its report of investigation early within the next reporting period.

From the original whistle-blower letter, which got the investigation ball rolling:

SEC-IG Report [PDF]

Related

The Securities And Exchange Commission Requests A Little Credit Where Credit Is Due, Please!

Yesterday, the Wall Street Journal ran a front page story reporting that the Securities and Exchange Commission had "blown" the cover of whistleblower Peter C. Earle. The article claimed that Earle, a former employee of Pipeline Trading Systems turned government informant, had his identity "inadvertently" revealed through a "gaffe" on the part of an SEC lawyer, who showed a Pipeline exec "a notebook from the whistleblower filled with jottings about trades, calls and meetings." The executive was said to have recognized Earle's handwriting and told his colleagues, who had previously suspected but did not know for sure that "Pete's the whistleblower." The story was easy to believe because if you've been keeping up with the SEC over the last number of years, you know that this sound exactly like something they'd accidentally do. Except that whereas the regulator fully copped to, for example, missing Madoff while trying to access ladyboyjuice.com 385 times/day, it says that this accusation? Is bull shit. It did not "inadvertently" "blow" anyone. Here's its strongly worded letter to the Journal saying as much: The Securities and Exchange Commission in no way exposed Peter Earle as a whistleblower, and our use of his notebooks in an investigative deposition was neither "inadvertent" nor a "breach" or "gaffe" ("Source's Cover Blown by SEC," Page One, April 25). It was a deliberate decision, which SEC lawyer Daniel Walfish discussed in advance with his supervisor, who was present for the deposition in which the notebooks were exhibited. Nor did the fully authorized use of the notebooks in any way compromise Mr. Earle or the integrity of the SEC's investigation of the Pipeline Trading Systems matter. Although it was widely known among executives of Pipeline and Milstream Strategy Group that Mr. Earle had approached the SEC after he was terminated from Milstream—a fact volunteered by several witnesses and acknowledged by Mr. Earle long before any use of his notebooks—the SEC declined to confirm his identity and still treated his status as a cooperating witness as confidential. The SEC made sure to obtain all of the notes of the approximately six Milstream traders, and in the SEC's deposition of Gordon Henderson (the supervisor of Mr. Earle and the other traders), the SEC used other traders' notes along with those of Mr. Earle. The use of these traders' notes—highly relevant evidence prepared in the ordinary course of their work at Milstream—in no way revealed whether Mr. Earle or any other trader was or was not cooperating with the SEC. George S. Canellos Director New York Regional Office U.S. Securities and Exchange Commission New York SEC Did Not Blow Source's Cover [WSJ] Earlier: SEC Burns Whistleblower In The Most SEC Way Possible