8/6/2019 GAO Accepts Garrett Request to investigation the Madoff Trustee, SIP, and the SEC 07-27-2011

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WASHINGTON, DC, July 27, 2011 -

Press Release

GAO Accepts Garrett Request to Probe Madoff Trustee, SEC

Rep. Scott Garrett (R-NJ), Chairman of the Financial Services Subcommittee on

Capital Markets and Government-Sponsored Enterprises, today announced that the Government Accountability Office

(GAO) has accepted his request to conduct a comprehensive evaluation of the actions of the Securities Investor

Protection Corporation (SIPC), the trustee in the liquidation of Bernard L. Madoff Investment Securities LLLC (BLMIS),

and the Securities and Exchange Commissions (SEC) involvement and oversight of this major liquidation.

I was pleased to hear that the GAO has agreed to undertake this important review. The public deserves to understand

the trustees motivations for excluding so many innocent investors from SIPC protection and questions need to be

answered regarding the SECs role in this affair, said Garrett. The trustees approach flies in the face of the SECs

investor protection mandate, yet the SEC has stood to the side and allowed SIPC and the trustee to go forward. All the

while, defrauded investors whom the government failed to protect in the first place are terrified of being victimized

once again. I look forward to reviewing the GAOs findings. It is my hope that the investigation will encourage the SEC

to take its supervisory role over SIPC more seriously.

In February, Garrett introduced in the House of Representatives H.R. 757, the Equitable Treatment of Investors Act,

which would reaffirm and clarify key protections for ordinary investors that were put in place when Congress passed

and amended the Securities Investor Protection Act (SIPA). H.R. 757 aims to properly shield innocen t individual

investors who have already been defrauded and financially devastated by Bernie Madoff from further clawbacks by

the Securities Investor Protection Corporation (SIPC) trustee.

Click here to view the original request letter sent to the GAO in June.

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