This article raises more concerns about the senior management at the SEC. The top lawyer at the SEC participated in decisions on the compensation of those harmed by the Madoff Ponzi scheme. His family had a substantial gain from the Madoff fund and the top SEC lawyer had a conflict of interest that should have led him to recuse himself from the deliberations. He had informed the head of the SEC about his conflict of interest, but she did not inform her fellow commissioners about the conflict. Moreover, the head of ethics at the SEC knew about the conflict of interest but he found no problem with the conflict. It turns out that he reported to the top SEC lawyer who wrote his review.
One of the primary roles of the SEC is to insure that corporations abide by laws which protect shareholders and investors from corporate officers who might make decisions that benefit them against the interests of shareholders and investors who do not have access to information available to corporate officers. It appears that senior management at the SEC does not take conflict of interest as seriously as it should.
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