Investor sues the SEC over Madoff losses

I posted the SEC is liable the day he story first broke. The reason they are liable is the same reason that accounting firms were held liable for the Enron failure. The SEC and the NYS government are THE ONLY LEGAL authorities with the legal power and authority to oversee investment firms. The SEC and NYS isue the business licenses to allow these firms to exist. As an investor I cannot examine any firms books...only the government has such authority.

Well, the old adage about: "If something appears to be too good to believe, then it probably is." is very applicable here. Also theold adage of "Buyer beware" is very applicable.

Unfortunately, in spite of its failures in these matters, the SEC (sic. the American tax payer) is NOT LIABLE to Phylis for her imprudent investments. No regulatory agency should be able to be held "liable" for such problems . . . HOWEVER, the management of these agencies should be held PERSONALLY RESPONSIBLE for misfeaane and malfeasance, AND they should be FIRED for their falure to uphold their fiduciary responsibilities.

Phylis shouldn't be entitled to any "compensation" from the SEC for her blatantly foolish and imprudent investments; and the magement of the SEC should be REPLACED by more conscientious managers.

Teh SEC's obligations are to ensure that the "remedies" of the dissolution of Madoffs funds by bankruptcy and the equitible distributions of the assets to all of the investors is performed properly . . . of course the attorneys will peck it to the bone to the point that there is nothing left of any "asset value" for "distribution".

Frankly, I have absolutely no empathy or sympathy for Phylis . . . with her wealth, sheshould have realized the risks that were incumbent with such a ponzi scheme. I just wonder how much previous "income" she might have received from Madoff's funds in previous years??? (That hasn't been revealed ahs it?)

Sorry Ms Molchatsky, you don't deserve anything else.

I have bailed out greedy investment bankers. I have loaned money to continue to overpay UAW and there inept CEO's. Now I have rich New York Jews wanting me to cover there loses on bad investments. What about my 401K?

112-23-2008 @ 11:44AM

sgentilejr said... As an investor I cannot examine any firms books...only the government has such authority.
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All that the government can do is to establish the "standards requirments" for: 1) independent audits of the various FIs, Funds, and corporations, 2) implement prudent "regulation and oversight", in as much as possible under the regulations. 3) Diligently indict and prosecute white collar crime.

Beyond that, it is up to the individual to assume whatever risks are incumbent to the investments that they chose to make. "Society" as wa whole cannot guarantee "everything", that is what the Law is for, to redress problems between individuals and parties to contracts. The government (the other taxpayers/ citizents) do not have the ability to "guarantee" "losses due to FRAUD".

Too many people envision "government as being some "third, god-like" entity; but it isn't. Government is merely the agencies "of the people" to guide and oversee the functioning of our society.

The SEC is not liable for such losses . . . yeah, I would agree that the managment of SEC clearly need to be FIRED and replaced.

Bharrison are you that dumb? Phylis should get every penny back minus the dividends she recieved... minus the taxes she payed on income that was already hers.

Is this person nuts or what? Here we got a greedy Jew who thinks we owe him for being greedy. Give me a break, seen these slugs in the bar and they were laughing for years that they had the inside track with their Jew buddy Bernie and the Gentiles were getting screwed why they were making millions and living the high life on Long Island and Palm Beach. Don't have a tear for these greedy people, while us poor folks eat hamburger and bacon they needed the best wines and wouldn't give you the time of day, they took our money and set up trusts for there kind only.

And you're surprised why? Look people, stop looking to government to fix things. Newsflash: IT CAN'T!

Will we EVER learn? And Obama is promising health care for everbody...the government can't even oversee that financial markets, education, trade, etc, etc...and now you want to put it in charge of health care? Good luck with that.

Attention all Madoff "investors": Stop your whining. You are now poor. Go do the world a favor (like all poor people should) and commit suicide. I need the peace and quiet.

I wish Mrs. Phyllis Molchatsky luck; but, as we speak Bernie Ebbers of World Com is up for a pardon, after only two years on his 25 years sentence. Again the SEC was not aware of the problem and the Accounting firms were working for the benefit of World Com. The investors got nothing. So, again Ms Molchatsky good luck, but based on my experience you are out the 2 million dollars, or a major part thereof, that you invested with Mr. Madoff

No government hand outs for the rich and greedy.If the government gives them money we need to stop paying the goverment.My kids college fund is gone,my 401k is gone,my wife's 401k is gone who is going to replace my money.

HOW DUMB WAS MRS MOLCHATSKY to PUT HER LIFE SAVINGS INTO THIS SCAM???TOO DAMN GREEDY FOR HER OWN GOOD SERVES HER RIGHT TO LOSE IT ALL

Its true buyer be aware , however, The SEC should take and accept for their negligence for not watching over investers who supposedly invested in so called reputable investment firms as MADOFF, (MAD-OFF-WITH EVERYONES _MONEY) It seems by readuing these posts there are alot of ignorant people on here who feel thats its ok that people like Ms Molchatsky lost money, after all she is just some rich woman, why should we feel sorry for her, well get real, woman do work hard for their money, would it have been different if she was a man losing money to scum bags like MADOFF, she has every right and more to sue the SEC, govenment or not she should even sue those in congress the president and everyone who appointed such individuals who ultimately failed in watching over her money. And let us not forget the Anti Semetic ass holes who now have a voice and are presently happy that the socalled rich Jews got screwed of their money , You gelouse scum bags , you are nothing but gentile losers, get a fuckin life. GOOD LUCK MS MOLCHATSKY with your plight with the SEC, make anexample of them and those associated with them.

To those of you saying the gov't is void of responsibility you have it all wrong!

This was a clear cut case of "FRAUD", not investor non diligence. When you sign on or read a prospectus on an investor fund that fund takes on the responsibility of managing your money making sure fraud isn't committed.

The SEC in turn was warned over & over that fraudulent means were in play on a fund that never had bad returns. They & the lazy ass fund managers who were employed to oversee these finances were clearly asleep at the wheel.

Keep in mind the keyword is "fraud" here. This isn't about investor losses under the guise of business as usual. No matter how much you have the ass for rich people, quite a bit of this money were life savings pissed away because responsible parties didn't do their job. When you invest & lose, that's one thing. When you're a victim of out & out fraud someone in control of the system should be held accountable. This woman definitely has a case & Cox's own words will work in her favor as undeniable fact the SEC is responsible.

Perhaps in the end it will serve notice to the high flying scum of Wall Street to value the yrs of devotion from whence this money came & alert them they have something personally on the line as well when trust that's given to them is totally overlooked....

I lost $25,000 in worldcom you know what i got back in the class action lawsuit only $29.00 thats right $29.00 bucks. so all you greedy whiners kiss me where the sun don't shine. your not gonna get s--- back. if you think you were gonna get 11% return on your money in this economy then i have waterfront property in arizona i want to sell you. you were all greedy & got screwed by one of your own.

It is not just the Jews who are suffering.
Here in south Florida a Christian school
had to close because its benefactor ran out of money due to Madoff's scam.
Please, let's leave religion out of this.

Why is it that someone like Madoff after admitting to fraud on a major scale, is currently on house arrest? If he had taken a few dollars from a store he would be in jail now, not house arrest.

Glenn

Why is it that the media is completely ignoring the work that a certified fraud examiner, Mr. Markopolos, did to reveal the Madoff scheme to the SEC? He not only reported to the SEC that Madoff was running a Ponzi scheme, he has his findings backed-up by a theoretical mathematician. I assume that Markopolos will be THE star witness for anybody suing the individual officials at the SEC. Somebody's going to jail.