SEC Disciplines 7 Employees

The Securities and Exchange Commission on Friday disciplined seven agency employees over their failure to stop Bernie Madoff’s investment fraud—but the agency stopped short of actually firing anyone. An eighth employee resigned before any disciplinary action could be taken. Disciplinary measures consisted of suspensions, pay cuts, and demotions; one of the most severe measures was a 30-day suspension and demotion. SEC spokesman John Nester said the employees were not fired, because it “would have an adverse impact on the agency’s work.” A 2009 report indicated that the SEC had received “numerous substantive complaints” since 1992, but investigators “disregarded these concerns or relied inappropriately upon Madoff’s representations and documentation in dismissing them.”