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"His fraud is note worthy for its duration, it may well have lasted for decades, and the amount of money investors lost which was nearly 50 billion dollars but for all of his deception Mr. Madoff was right about one thing, the public really didn't understand nor it appears did the regulators, " said, Senator Christopher Dodd (D-CT), Chairman of the Senate Banking and Urban Affairs Committee.

Today a Full committee hearing was held regarding the Madoff fraud case. Mr. Madoff was not only a successful businessman but former chairman of the NASDAQ stock exchange. At the hearing committee, members discussed how the Securities and Exchange Commission (SEC) failed to detect fraud and left violation undetected. Intense and uncomfortable questions were directed to Lori Richard's, director of the Office of Compliance, Inspections and Examinations at the SEC and Linda Thompson, director of the SEC's Division of Enforcement. Their key focus was to confront the failed regulatory system which resulted in the terrible and dramatic affects for thousands of investors over a significant period of time. Chairman Dodd revealed that the fraud went undetected until Madoff confessed and noted that his assets have been frozen in the firms along with current ongoing investigations.

The hearing indicated that pension funds, municipalities, charities and individuals along with banks drastically lost money due to Madoff. A witness, John Coffee, professor of law at Columbia University Law School gave his testimony revealing shocking numbers that in 2002 9.6 billion dollars was lost by the fraud schemes. Ranking member of the committee Richard Shelby (R-AL) not only indicated that the SEC missed vital opportunities to detect fraud but also included the Financial Industry Regulatory Authority in the carelessness which was glazed over.

"I want to be clear Mr. Chairman. I'm not suggesting that individuals within our regulatory structure are responsible for the Madoff scandal. The blame here is easily assigned. Madoff and anyone who assisted him in caring out the fraud are responsible. Rather today I'm suggesting that our regulator's experience with the Madoff firm over the years did present opportunities to intervene but they didn't." said, Ranking member Richard Shelby (R-AL)

by Candyce Torres, University of New Mexico-Talk Radio News Service