Press Release

GAO Accepts Garrett Request to Probe Madoff Trustee, SEC

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WASHINGTON, DC, July 27, 2011 - Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, today announced that the Government Accountability Office (GAO) has accepted his request to conduct a comprehensive evaluation of the actions of the Securities Investor Protection Corporation (SIPC), the trustee in the liquidation of Bernard L. Madoff Investment Securities LLLC (BLMIS), and the Securities and Exchange Commission’s (SEC) involvement and oversight of this major liquidation. “I was pleased to hear that the GAO has agreed to undertake this important review. The public deserves to understand the trustee’s motivations for excluding so many innocent investors from SIPC protection and questions need to be answered regarding the SEC’s role in this affair,” said Garrett. “The trustee’s approach flies in the face of the SEC’s investor protection mandate, yet the SEC has stood to the side and allowed SIPC and the trustee to go forward. All the while, defrauded investors – whom the government failed to protect in the first place – are terrified of being victimized once again. I look forward to reviewing the GAO’s findings. It is my hope that the investigation will encourage the SEC to take its supervisory role over SIPC more seriously.” In February, Garrett introduced in the House of Representatives H.R. 757, the Equitable Treatment of Investors Act, which would reaffirm and clarify key protections for ordinary investors that were put in place when Congress passed and amended the Securities Investor Protection Act (SIPA). H.R. 757 aims to properly shield innocent individual investors who have already been defrauded and financially devastated by Bernie Madoff from further “clawbacks” by the Securities Investor Protection Corporation (SIPC) trustee. Click here to view the original request letter sent to the GAO in June. ### Print version of this document

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