Madoff escaped scrutiny by the SEC

US regulators never inspected Bernard Madoff’s investment advisory business, alleged to be a Ponzi scheme that cost investors $50bn, after he subjected it to oversight two years ago, two people familiar with the case told Bloomberg. The SEC hadn’t examined Madoff’s books since he registered the unit with the agency in September 2006, the people said. The SEC tries to inspect advisers at least every five years and to scrutinize newly registered firms in their first year, former agency officials and securities lawyers said.

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