More On Legal & Compliancefrom The Advisor's Professional Library
- Trading Practices and Errors When SEC-registered investment advisors conduct annual audits of firm policies and procedures, they should pay close attention to trading practices. Though usually not required to, state-registered advisors should look at their trading practices and revise policies that do not fully protect clients.
- Differences Between State and SEC Regulation of Investment Advisors States may impose licensing or registration requirements on IARs doing business in their jurisdiction, even if the IAR works for an SEC-registered firm. States may investigate and prosecute fraud by any IAR in their jurisdiction, even if the individual works for an SEC-registered firm.
Mark Madoff, the elder son of Bernie Madoff, the man whose name has become a byword for financial fleecing, took his life on Saturday on the second anniversary of his father’s arrest.
The younger Madoff, 46, was found in his SoHo apartment by his father-in-law; his two-year-old son was in the apartment at the time, according to a Reuters report.
Bernard Madoff, 72, is currently serving a 150-year sentencefor committing what is considered the largest financial fraud in history; he ran a Ponzi schemethat ran for decades and brought him and his family illicit billionsin wealth at the expense of his investors, both large and small, famous and unknown. He was arrested on Dec. 11, 2008, after his two sons turned him in; they said he had admitted to them what he had done the day before.
However, investors have found it difficult to believe that the younger Madoffs and the rest of the family did not know what Madoff was up to. An unnamed source said Mark Madoff was distraught over the possibility of criminal chargesbeing filed against him.
In addition, he and other family members were being suedby the court-appointed trustee in an effort to recover some moneyfor the investors who were defrauded in the operation. Five Madoff grandchildren were being sued as well. The trustee, Irving Picard, has said that family members should have been aware of what was going on and called all the Madoffs who worked at the firm “completely derelict in duties and responsibilities.”