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Posts Tagged ‘civil law’

Due Diligence Mess

Investor Fraud and Ponzi schemes

Indictments for Ponzi schemes and investor fraud have been increasing everyday. While pundits, congress and financial experts pinpoint problems with regulatory agencies such as the SEC, the real problem centers on what I call the “Due Diligence Mess,” the way in which this process is handled within the legal and financial community.

After the recent sentencing of Bernard Madoff one of his victims made this statement to USA Today, “My due diligence was the SEC. What greater due diligence can you have than the SEC? They failed us.”