The Inspector General for the Securities and Exchange Commission said the agency failed to conduct "competent and thorough" investigations about Ponzi schemer Bernard Madoff, even after at least six warnings. IG David Kotz wrote in his report, "Despite numerous credible and detailed complaints, the SEC never properly examined or investigated Madoff’s trading and never took the necessary, but basic, steps to determine if Madoff was operating a Ponzi scheme," adding that even Madoff himself was "shocked" that the SEC didn't check his trading records, which would have revealed the $65 billion fraud. more ›