Reuters – U.S. securities  regulators missed “numerous” red flags that may have led to  Bernard Madoff’s $65 billion Ponzi scheme and never did a  “thorough and competent” probe despite complaints dating to  1992, a federal watchdog has concluded.

The U.S. Securities and Exchange Commission’s inspector  general said in a blistering report that despite five probes  and having caught Madoff in “lies and misrepresentations,” the  SEC failed to follow up on inconsistencies.

“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,” Inspector General David  Kotz wrote.

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Tags: inconsistencies, red-flags, regulators, securities-and-exchange