SEC Staff Told Not to Destroy Docs

The source said that one associate director in the enforcement division had in recent days ordered junior staff to review every case that’s been closed over the last few years, to ensure that violations weren’t missed — as they appear to have been in the 2006 investigation of Madoff. “There’s a real paranoia around here,” the source added.

That paranoia — or at least extreme concern — apparently extends to commission officials in Washington. The source said that since the Madoff allegations came to light last week, SEC brass had sent out numerous emails warning staffers not to destroy documents relating to the case.

Emails “warning staffers not to destroy documents” is, of course, the functional equivalent of Frank Quattrone’s infamous admonition that “Now would be a good time to clean up your files” or similar. Why else would the staff of one of the nation’s most important, if FUBAR, law enforcement agencies need numerous emails on the subject?

SECer: Agency “In A State Of Complete Panic”

by Zachary Roth

TPM Muckraker Dec. 21 2008

Comments

[irisatrx:]

They should just wander the aisles of the Enforcement Division and start handing out subpoenas.

A few months ago, well into the financial meltdown, the Washington Post carried a paragraph noting that one of the top officials in the Enforcement Division got nailed for feeding her former employer [Goldman Sachs, I believe] information on the SEC investigation.

She wasn't fired or indicted; simply warned that she shouldn't get caught again.

I wasn't a supporter of Obama, but maybe with his new crew at Justice, they'll round up some of these worthless jerks and put them in jail.

I'm afraid it's just one episode after another of the senior bureaucrats covering their butts.

2008 Dec 22 03:49 PM