Stop the Presses: SEC Halts a Ponzi Scheme!
In what could possibly be the biggest 'too little, too late' moment of the century, the SEC announced today that it halted a $23 million Ponzi scheme targeted at Haitian-Americans. How this one was detected while the $50 billion Madoff scheme slipped through the cracks is beyond us.
To put the two Ponzi schemes into perspective, tomorrow morning a Federal judge is set to approve the disbursement of $28.1 million in funds in order to just facilitate the liquidation of Madoff's assets. In other words, the total cost of the Ponzi scheme the SEC actually caught is $5 million less than the initial amount it will cost to liquidate the firm that ran the Ponzi scheme the SEC missed.
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The SEC stops dozens of Ponzi/pyramid schemes every year. It is not as if they suddenly started looking for one post-Madoff.
Posted by: JDS | December 30, 2008 at 01:24 PM