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| occupation = Rules and compliance officer and attorney |
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| employer = Bernard L. Madoff Investment Securities |
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'''Shana Madoff''', sometimes referred to as '''Shana Madoff Skoller Swanson''', (born December 8, 1967) is an American attorney. She is a daughter of [[Peter Madoff]], and a niece of [[Bernard Madoff]], who operated a multi-billion-dollar [[Ponzi scheme]] that is considered to be the largest financial fraud in U.S. history.<ref name="google1">{{cite book|url=http://books.google.com/books?id=uDWuilMrwkcC&pg=PA391 |
'''Shana Madoff''', sometimes referred to as '''Shana Madoff Skoller Swanson''', (born December 8, 1967) is an American attorney. She is a daughter of [[Peter Madoff]], and a niece of [[Bernard Madoff]], who operated a multi-billion-dollar [[Ponzi scheme]] that is considered to be the largest financial fraud in U.S. history.<ref name="google1">{{cite book|url=http://books.google.com/books?id=uDWuilMrwkcC&pg=PA391 |title=Investigation of Failure of the SEC to Uncover Bernard Madoff's Ponzi Scheme |author= |publisher=Diane Publishing |year= 2010}}</ref><ref name="google2">{{cite book|url=http://books.google.com/books?id=kddM4mPmy8AC&pg=PT184 |title=Madoff with the Money |author=Jerry Oppenheimer |publisher=John Wiley & Sons |year= 2009}}</ref><ref name="google3">{{cite book|url=http://books.google.com/books?id=mn9WAAAAYAAJ&q=%22shana+madoff%22+compliance&dq=%22shana+madoff%22+compliance |title=Madoff: Corruption, Deceit, and the Making of the World's Most Notorious Ponzi Scheme|author=Peter J. Sander |publisher=Lyons Press |year=2009 }}</ref> |
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She was a compliance officer and attorney at her uncle's firm, Bernard L. Madoff Investment Securities (BMIS), from 1995 until 2008. In December 2008 it was discovered to be a Ponzi scheme, and closed as part of the [[Madoff investment scandal]]. She also served on compliance Executive Committees of the [[Securities Industry Association]] and the [[Securities Industry and Financial Markets Association]] (SIFMA), and served on the compliance advisory committee of the [[Financial Industry Regulatory Authority]] (FINRA), a securities industry "[[self-regulatory organization]]". Her uncle Bernard was sentenced to 150 years in jail for the scheme, and her father, who was her boss at the company and the chief compliance officer, was sentenced to 10 years in jail. |
She was a compliance officer and attorney at her uncle's firm, Bernard L. Madoff Investment Securities (BMIS), from 1995 until 2008. In December 2008 it was discovered to be a Ponzi scheme, and closed as part of the [[Madoff investment scandal]]. She also served on compliance Executive Committees of the [[Securities Industry Association]] and the [[Securities Industry and Financial Markets Association]] (SIFMA), and served on the compliance advisory committee of the [[Financial Industry Regulatory Authority]] (FINRA), a securities industry "[[self-regulatory organization]]". Her uncle Bernard was sentenced to 150 years in jail for the scheme, and her father, who was her boss at the company and the chief compliance officer, was sentenced to 10 years in jail. |
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==Early life== |
==Early life== |
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She was born in [[Queens, New York]], in 1967, and grew up in [[Woodbury, Nassau County, New York|Woodbury]] on the [[North Shore of Long Island]].<ref name="autogenerated1">{{cite news|last=Williamson |first=Elizabeth |url=http://online.wsj.com/article/SB122991035662025577.html |title=Shana Madoff's Ties to Uncle Probed | |
She was born in [[Queens, New York]], in 1967, and grew up in [[Woodbury, Nassau County, New York|Woodbury]] on the [[North Shore of Long Island]].<ref name="autogenerated1">{{cite news|last=Williamson |first=Elizabeth |url=http://online.wsj.com/article/SB122991035662025577.html |title=Shana Madoff's Ties to Uncle Probed |work=Wall Street Journal |date=December 22, 2008 |accessdate=February 15, 2013}}</ref><ref>{{cite web|url=http://www.wallstreetprisonconsultants.com/nypost.html |author= Kieran Crowley |title= Jail for Dummies; Madoff Kin Seek Prison-Surivival Class |work=New York Post |date=April 13, 2009 |accessdate=February 19, 2013}}</ref> She graduated from the [[University of Michigan]], and from [[Fordham Law School]] in 1995.<ref name="google2"/><ref name="google3"/> |
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==Career== |
==Career== |
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In 1995, after graduating from law school, Shana Madoff started to work at her uncle's firm, Bernard L. Madoff Investment Securities (BMIS).<ref name="google2"/><ref>{{cite book|url=http://books.google.com/books?id=xhbStL10aywC&pg=PT141 |
In 1995, after graduating from law school, Shana Madoff started to work at her uncle's firm, Bernard L. Madoff Investment Securities (BMIS).<ref name="google2"/><ref>{{cite book|url=http://books.google.com/books?id=xhbStL10aywC&pg=PT141 |title=Too Good to Be True: The Rise and Fall of Bernie Madoff |author=Erin Arvedlund |publisher=Penguin |year=2009 }}</ref> She was a rules and [[Compliance (regulation)|compliance]] officer and attorney at BMIS, a significant senior officer position for which she collected millions of dollars. She was also a compliance officer and attorney for Cohmad Securities, which was co-owned by her uncle and helped bring investors to BMIS.<ref name="google1"/><ref name="autogenerated2">{{cite journal|url=http://finance.fortune.cnn.com/2012/07/02/the-madoff-saga-is-far-from-over/ |author=Allan Dodds Frank |title=The Madoff saga is far from over |work=Fortune |date= July 2, 2012|accessdate=February 15, 2013}}</ref><ref>{{cite book|url=http://books.google.com/books?id=sI1jqoMRW7gC&pg=PA417 |title=Business Ethics: Ethical Decision Making & Cases |author=O. C. Ferrell, John Fraedrich, Linda Ferrell, Ferrell |publisher=Cengage Learning |year=2012 }}</ref> She was responsible for ensuring that BMIS complied with its legal and regulatory obligations, and she signed documents assuring the SEC that BMIS's business records were truthful and accurate.<ref name="autogenerated2"/><ref name="reuters1">{{cite news|url=http://in.reuters.com/article/2009/10/02/madoff-family-idINN0233256520091002 |author= Grant McCool, Gerald E. McCormick, Carol Bishopric|title=Trustee sues Madoffs who helped run firm |publisher=Reuters |date=October 3, 2009 |accessdate=February 14, 2013}}</ref> In fact, however, while the documents certified to the SEC that BMIS had 23 clients and $17.1 billion under management, it in actuality had 4,900 customers with a nominal $68 billion in investments.<ref name="autogenerated2"/> |
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At the same time, Shana Madoff took prominent positions in industry organizations. She served on the Executive Committee of the Compliance & Legal Division of the [[Securities Industry Association]], which merged with another industry organization to become SIFMA, the lobbying arm of the industry, in November 2006.<ref name="google1"/><ref name="google1"/><ref name="autogenerated1"/><ref>{{cite book|url=http://books.google.com/books?id=-pC06llkznwC&pg=PA253 |
At the same time, Shana Madoff took prominent positions in industry organizations. She served on the Executive Committee of the Compliance & Legal Division of the [[Securities Industry Association]], which merged with another industry organization to become SIFMA, the lobbying arm of the industry, in November 2006.<ref name="google1"/><ref name="google1"/><ref name="autogenerated1"/><ref>{{cite book|url=http://books.google.com/books?id=-pC06llkznwC&pg=PA253 |title=Madoff with the Money |author=Jerry Oppenheimer |publisher=John Wiley & Sons |year=2009 }}</ref> She then became an active member of the Executive Committee of SIFMA's Compliance & Legal Division, while her father served on SIFMA's board of directors.<ref name="autogenerated1"/><ref name="google4">{{cite book|url=http://books.google.com/books?id=713RERI0HjgC&pg=PA21 |title=The Road To America's Economic Meltdown |author=Raymond Beresford Hamilton |publisher= |year= 2009 }}</ref> She resigned that position after her uncle's arrest.<ref name="google4"/> She also served on the compliance advisory committee of FINRA, a securities industry "[[self-regulatory organization]]".<ref name="google2"/> |
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==Madoff scandal== |
==Madoff scandal== |
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[[File:BernardMadoff.jpg|thumb|180px|[[Bernard Madoff]]]] |
[[File:BernardMadoff.jpg|thumb|180px|[[Bernard Madoff]]]] |
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Subsequent to the Ponzi scheme in the [[Madoff investment scandal]] becoming public, a spokesman for Shana Madoff said she had "no prior knowledge of the horrific fraud perpetuated."<ref name="autogenerated3">{{cite news|last=Barlyn |first=Suzanne |url=http://online.wsj.com/article/SB123005903944830699.html?mod=googlewsj |title=Madoff Case Raises Compliance Questions | |
Subsequent to the Ponzi scheme in the [[Madoff investment scandal]] becoming public, a spokesman for Shana Madoff said she had "no prior knowledge of the horrific fraud perpetuated."<ref name="autogenerated3">{{cite news|last=Barlyn |first=Suzanne |url=http://online.wsj.com/article/SB123005903944830699.html?mod=googlewsj |title=Madoff Case Raises Compliance Questions |work=Wall Street Journal |date=December 23, 2008 |accessdate=February 15, 2013}}</ref> |
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She is married to [[Eric Swanson]], an attorney and a former Assistant Director of the Office of Compliance Investigations and Examinations at the SEC, the securities regulator, whom she met in April 2003.<ref name="google1"/><ref name="autogenerated1"/><ref name="google5">{{cite book|url=http://books.google.com/books?id=NqLowdnwd7EC&pg=PA46 |
She is married to [[Eric Swanson]], an attorney and a former Assistant Director of the Office of Compliance Investigations and Examinations at the SEC, the securities regulator, whom she met in April 2003.<ref name="google1"/><ref name="autogenerated1"/><ref name="google5">{{cite book|url=http://books.google.com/books?id=NqLowdnwd7EC&pg=PA46 |title=The Fundamental Rules of Risk Management |author=Nigel Da Costa Lewis |publisher= CRC Press|year= 2012}}</ref> She and Swanson met originally during an SEC examination of whether Bernie Madoff was running a Ponzi scheme, and the two started a regular correspondence; during 2003, Swanson sent Peter Madoff several regulatory requests.<ref name="google1"/><ref name="scribd1">{{cite web|url=http://www.scribd.com/doc/19436875/53/B-Swanson%E2%80%99s-Initial-Contact-with-Shana-Madoff |author=U.S. SEC Office of Investigations |title=Investigation of Failure of the SEC to uncover Bernard Madoff's Ponzi Scheme (Public Version); B. Swanson's Initial Contact with Shana Madoff for SEC Office of Investigations Investigation of the SEC to Uncover Madoff Ponzi Scheme |publisher= |date= August 31, 2009|accessdate=February 15, 2013}}</ref><ref name="foxbusiness1">{{cite news|url=http://m.foxbusiness.com/quickPage.html?page=19453&content=24978239&pageNum=-1 |author= |title=E-Mails Reveal Internal Drama at SEC Over Maddof Firm |publisher=Fox Business |date=March 4, 2006 |accessdate=February 15, 2013}}</ref><ref>{{cite book|url=http://books.google.com/books?id=RtI1-5VyGDAC&pg=PA97 |title=Catastrophe: The Story of Bernard L. Madoff, the Man Who Swindled the World |author=Deborah Hart Strober, Gerald Strober, Gerald S. Strober |publisher= Phoenix Books, Inc|year=2009}}</ref><ref>{{cite book|url=http://books.google.com/books?id=ShY3_mtpO5kC&pg=PA118 |title=How the Global Financial Markets Really Work: The Definitive Guide to Understanding International Investment and Money Flows|author=Alexander Davidson |publisher=Kogan Page Publisher |year=2010 }}</ref><ref>{{cite news|author=Charles Gasparino |url=http://www.cnbc.com/id/28242487/Madoff_Victims_Claim_Conflict_of_Interest_at_SEC |title=Madoff Victims Claim Conflict of Interest at SEC |publisher=CNBC |date=December 15, 2008 |accessdate=February 15, 2013}}</ref> |
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In March 2004, SEC lawyer [[Genevievette Walker-Lightfoot]] was reviewing Madoff's firm and raised questions to Swanson (who was her boss's supervisor) about unusual trading at one the Madoff funds; she was told to instead concentrate on an unrelated matter.<ref>{{cite news|url=http://www.washingtonpost.com/wp-dyn/content/article/2009/07/01/AR2009070104223.html |author= Zachary A. Goldfarb|title=SEC Investigator Raised Madoff Concerns Years Ago, Was Asked to Look Elsewhere | |
In March 2004, SEC lawyer [[Genevievette Walker-Lightfoot]] was reviewing Madoff's firm and raised questions to Swanson (who was her boss's supervisor) about unusual trading at one the Madoff funds; she was told to instead concentrate on an unrelated matter.<ref>{{cite news|url=http://www.washingtonpost.com/wp-dyn/content/article/2009/07/01/AR2009070104223.html |author= Zachary A. Goldfarb|title=SEC Investigator Raised Madoff Concerns Years Ago, Was Asked to Look Elsewhere |work=Washington Post |date=July 2, 2009 |accessdate=February 15, 2013}}</ref><ref name="nymag1">{{cite journal|last=Pressler |first=Jessica |url=http://nymag.com/daily/intelligencer/2009/07/sec_lawyer_raised_questions_ab.html |title=SEC Lawyer Raised Questions About Madoff Back in 2004 |work=New York Magazine |date=July 2, 2009 |accessdate=February 15, 2013}}</ref> Swanson and her boss asked for her research, but did not act upon it.<ref name="nymag1"/> |
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In February 2006, Swanson was emailed by Assistant Director John Nee that the SEC’s New York Regional Office was investigating a complaint that Bernard Madoff might be running |
In February 2006, Swanson was emailed by Assistant Director John Nee that the SEC’s New York Regional Office was investigating a complaint that Bernard Madoff might be running "the biggest Ponzi scheme ever."<ref name="scribd1"/> In April 2006, Swanson informed John McCarthy, Associate Director in the SEC Office of Compliance Inspections and Examinations, of his relationship with Shana Madoff, and McCarthy was very upset.<ref name="scribd1"/><ref name="foxbusiness1"/> When McCarthy found out later that month that the relationship was still continuing, and confronted Swanson about it, Swanson came clean and McCarthy was again extremely upset.<ref name="foxbusiness1"/> Swanson left the SEC on September 15, 2006.<ref name="google1"/><ref name="Sandler">{{cite news|last=Sandler |first=Linda |url=http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2ks0SCDEFEU&refer=us |author= |title=Facebook Removes Madoff Web Page After Jeers, Cheers |publisher=Bloomberg |date=December 22, 2008 |accessdate=February 15, 2013}}</ref> |
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The SEC closed its investigation of Bernie Madoff in 2006. In 2009, after the scandal broke, SEC Inspector General [[H. David Kotz]] investigated, and concluded that there was no evidence that Swanson's romantic relationship with Shana Madoff influenced the closing of the SEC investigation of Madoff.<ref>{{cite book|url=http://books.google.com/books?id=zKhbMU1RoHAC&pg=PA46 |
The SEC closed its investigation of Bernie Madoff in 2006. In 2009, after the scandal broke, SEC Inspector General [[H. David Kotz]] investigated, and concluded that there was no evidence that Swanson's romantic relationship with Shana Madoff influenced the closing of the SEC investigation of Madoff.<ref>{{cite book|url=http://books.google.com/books?id=zKhbMU1RoHAC&pg=PA46 |title=The Crime of Our Time: Why Wall Street Is Not Too Big to Jail |author=Danny Schechter |publisher= |year=2010 }}</ref><ref>[http://www.nytimes.com/2009/09/03/business/03madoff.html?pagewanted=all&_r=0 "Report Details How Madoff’s Web Ensnared S.E.C."], by David Stout, September 2, 2009, ''The New York Times''</ref> He did conclude, however, that: "Swanson's communication with Shana during the period of time he was engaged in a cause examination of her uncle and father's firm, created the appearance of a potential conflict of interest."<ref name="denverpost1">{{cite news|url=http://www.denverpost.com/ci_13316650 |author=Al Lewis |title= True love can never be regulated |work=The Denver Post |date= September 12, 2009|accessdate=February 19, 2013}}</ref> |
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Swanson left the SEC on September 15, 2006.<ref name="google1"/><ref name="Sandler"/> Swanson and Shana Madoff became engaged on December 8, 2006.<ref name="google1"/><ref>[http://www.nytimes.com/2008/12/19/business/19swanson.html?_r=0 "Unlikely Player Pulled Into Madoff Swirl"], by Stephen Labaton, December 18, 2008, ''The New York Times''</ref> |
Swanson left the SEC on September 15, 2006.<ref name="google1"/><ref name="Sandler"/> Swanson and Shana Madoff became engaged on December 8, 2006.<ref name="google1"/><ref>[http://www.nytimes.com/2008/12/19/business/19swanson.html?_r=0 "Unlikely Player Pulled Into Madoff Swirl"], by Stephen Labaton, December 18, 2008, ''The New York Times''</ref> |
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The September 2007 wedding of Shana Madoff and Swanson was attended by Lori Richards, the SEC's Director of Compliance Investigations and Examinations, who oversaw Swanson at the SEC.<ref name="google1"/><ref name="google5"/><ref name="cbsnews1">{{cite web|author=Laura Strickler |url=http://www.cbsnews.com/stories/2009/01/27/cbsnews_investigates/main4758066.shtml |title=SEC Compliance Official Recused on Madoff |publisher=CBS News |date=April 6, 2009 |accessdate=February 19, 2013}}</ref><ref>{{cite book|url=http://books.google.com/books?id=RLVPAQAAIAAJ&q=%22shana+madoff%22+compliance&dq=%22shana+madoff%22+compliance |
The September 2007 wedding of Shana Madoff and Swanson was attended by Lori Richards, the SEC's Director of Compliance Investigations and Examinations, who oversaw Swanson at the SEC.<ref name="google1"/><ref name="google5"/><ref name="cbsnews1">{{cite web|author=Laura Strickler |url=http://www.cbsnews.com/stories/2009/01/27/cbsnews_investigates/main4758066.shtml |title=SEC Compliance Official Recused on Madoff |publisher=CBS News |date=April 6, 2009 |accessdate=February 19, 2013}}</ref><ref>{{cite book|url=http://books.google.com/books?id=RLVPAQAAIAAJ&q=%22shana+madoff%22+compliance&dq=%22shana+madoff%22+compliance |title=Money Manager's Compliance Guide |author=Clifford J. Alexander, Arthur C. Delibert, Catherine S. Bardsley |publisher=Thompson Publishing Group |year=1994 }}</ref> In 2008, Bernard Madoff spoke at a business roundtable meeting of his "very close" relationship with an SEC lawyer, and chuckled: "my niece even married one".<ref>{{cite web|url=http://abcnews.go.com/Blotter/WallStreet/Story?id=6471863&page=1 |author=Brian Ross and Joseph Rhee |title=SEC Official Married into Madoff Family |publisher=ABC News |date=December 16, 2008 |accessdate=February 26, 2013}}</ref><ref>{{cite book|url=http://books.google.com/books?id=-pC06llkznwC&pg=PA193 |title=Madoff with the Money |author=Jerry Oppenheimer |publisher= John Wiley & Sons|year= 2009 }}</ref> In April 2009, Richards recused herself from the Madoff investigation.<ref name="cbsnews1"/> Swanson is now general counsel at [[BATS Trading]], the third-largest U.S. stock exchange.<ref>{{cite journal|url=http://www.forbes.com/2008/12/20/intelligent-investing-madoff-sec-fraud-panelDec22.html |author=David Serchuk |title=Love, Madoff And The SEC |work=Forbes |date=December 20, 2008 |accessdate=February 15, 2013}}</ref> |
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Shana Madoff's uncle Bernard pleaded guilty to federal charges against him, following the [[Madoff investment scandal]] becoming public, in March 2009. He was sentenced to 150 years in jail. Her father, the chief compliance officer of BMIS who was her boss at the company, pleaded guilty in July 2012 to fabricating documents to evade taxes and to help BLMIS escape SEC scrutiny. He was sentenced to 10 years in jail.<ref name="autogenerated2"/><ref name="autogenerated3"/> As part of her father's forfeiture deal with the Justice Department, the $2.3 million in proceeds from selling Shana's five-bedroom [[East Hampton (town), New York|East Hampton]], New York, weekend house was surrendered.<ref name="autogenerated2"/> |
Shana Madoff's uncle Bernard pleaded guilty to federal charges against him, following the [[Madoff investment scandal]] becoming public, in March 2009. He was sentenced to 150 years in jail. Her father, the chief compliance officer of BMIS who was her boss at the company, pleaded guilty in July 2012 to fabricating documents to evade taxes and to help BLMIS escape SEC scrutiny. He was sentenced to 10 years in jail.<ref name="autogenerated2"/><ref name="autogenerated3"/> As part of her father's forfeiture deal with the Justice Department, the $2.3 million in proceeds from selling Shana's five-bedroom [[East Hampton (town), New York|East Hampton]], New York, weekend house was surrendered.<ref name="autogenerated2"/> |
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In October 2009, court-appointed trustee [[Irving Picard]] charged in a civil lawsuit that she played a role in filing a January 2008 form that inflated the assets that the Madoff firm in fact had.<ref>{{cite book|url=http://books.google.com/books?id=0jBV7hiCaPkC&pg=PT471 |
In October 2009, court-appointed trustee [[Irving Picard]] charged in a civil lawsuit that she played a role in filing a January 2008 form that inflated the assets that the Madoff firm in fact had.<ref>{{cite book|url=http://books.google.com/books?id=0jBV7hiCaPkC&pg=PT471 |title=America's Housing and Financial Frauds |author=Rodney Stich |publisher=Silverpeak Enterprises |year=2008}}</ref> Picard sued her and her father and two cousins (Mark Madoff and Andrew Madoff) for what he said was $198.7 million of misappropriated customer money while they were executives of BMIS, alleging that had they done their jobs honestly the scheme might never have succeeded or continued as long as it did.<ref name="reuters1"/> Picard said: <blockquote>It would seem impossible for her to carry out her compliance duties, year in and year out, without questioning or considering whether BLMIS's IA [investment advisory business] was a fraud. Either [she and her father] failed completely to carry out their required supervisory/compliance roles, or they knew about the fraud, but covered it up.<ref name="autogenerated2"/></blockquote> She called the claim baseless, and said she had no knowledge of the scheme.<ref name="reuters1"/> |
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{{clear}} |
{{clear}} |
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In 2012, U.S. Attorney [[Preet Bharara]] stated: "We are not yet finished calling to account everyone responsible for the epic fraud of Bernard Madoff and the epic pain of his many victims."<ref name="autogenerated2"/> [[Columbia Law School]] Professor [[John C. Coffee|John Coffee]], referring to Shana and her cousin Andrew, said: "The prosecutors ... have done the low-hanging fruit; they are now reaching to the medium-level fruit… Beyond the two kids, I do not know how much farther they will want to go."<ref name="autogenerated2"/> Coffee said: <blockquote>Prosecutors can use the same charges as they did against her father, maybe not seeking 10 years, but I could see them giving her the choice of pleading to a [[felony]] conviction on the same grounds. She is a lawyer; lawyers don't get the benefit of the doubt. They could say you knew this [SEC filing] was false, even if you did not know it was a Ponzi scheme.<ref name="autogenerated2"/> </blockquote> |
In 2012, U.S. Attorney [[Preet Bharara]] stated: "We are not yet finished calling to account everyone responsible for the epic fraud of Bernard Madoff and the epic pain of his many victims."<ref name="autogenerated2"/> [[Columbia Law School]] Professor [[John C. Coffee|John Coffee]], referring to Shana and her cousin Andrew, said: "The prosecutors ... have done the low-hanging fruit; they are now reaching to the medium-level fruit… Beyond the two kids, I do not know how much farther they will want to go."<ref name="autogenerated2"/> Coffee said: <blockquote>Prosecutors can use the same charges as they did against her father, maybe not seeking 10 years, but I could see them giving her the choice of pleading to a [[felony]] conviction on the same grounds. She is a lawyer; lawyers don't get the benefit of the doubt. They could say you knew this [SEC filing] was false, even if you did not know it was a Ponzi scheme.<ref name="autogenerated2"/> </blockquote> |
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==References== |
==References== |
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{{Reflist| |
{{Reflist|30em}} |
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==External links== |
==External links== |
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|NAME = Madoff, Shana |
|NAME = Madoff, Shana |
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|ALTERNATIVE NAMES = |
|ALTERNATIVE NAMES = |
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|SHORT DESCRIPTION = |
|SHORT DESCRIPTION = Former compliance officer and attorney for firm of Bernard Madoff |
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|DATE OF BIRTH = April 29, 1967 |
|DATE OF BIRTH = April 29, 1967 |
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|PLACE OF BIRTH = Queens, New York, U.S. |
|PLACE OF BIRTH = Queens, New York, U.S. |
Revision as of 01:09, 12 June 2014
Shana Madoff | |
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Born | Queens, New York | December 8, 1967
Education | |
Occupation(s) | Rules and compliance officer and attorney |
Years active | 1995–2008 |
Employer | Bernard L. Madoff Investment Securities |
Known for | Compliance officer/attorney at uncle Bernard Madoff's firm, which was the largest financial fraud in U.S. history |
Spouse | Eric Swanson |
Children | One daughter[1] |
Parent(s) | Peter Madoff, father |
Shana Madoff, sometimes referred to as Shana Madoff Skoller Swanson, (born December 8, 1967) is an American attorney. She is a daughter of Peter Madoff, and a niece of Bernard Madoff, who operated a multi-billion-dollar Ponzi scheme that is considered to be the largest financial fraud in U.S. history.[2][3][4]
She was a compliance officer and attorney at her uncle's firm, Bernard L. Madoff Investment Securities (BMIS), from 1995 until 2008. In December 2008 it was discovered to be a Ponzi scheme, and closed as part of the Madoff investment scandal. She also served on compliance Executive Committees of the Securities Industry Association and the Securities Industry and Financial Markets Association (SIFMA), and served on the compliance advisory committee of the Financial Industry Regulatory Authority (FINRA), a securities industry "self-regulatory organization". Her uncle Bernard was sentenced to 150 years in jail for the scheme, and her father, who was her boss at the company and the chief compliance officer, was sentenced to 10 years in jail.
She is married to Eric Swanson, a former Assistant Director of the Office of Compliance Investigations and Examinations at the U.S. Securities and Exchange Commission (SEC). She first met her husband when he was conducting an SEC examination of whether Bernie Madoff was running a Ponzi scheme.
Early life
She was born in Queens, New York, in 1967, and grew up in Woodbury on the North Shore of Long Island.[5][6] She graduated from the University of Michigan, and from Fordham Law School in 1995.[3][4]
Career
In 1995, after graduating from law school, Shana Madoff started to work at her uncle's firm, Bernard L. Madoff Investment Securities (BMIS).[3][7] She was a rules and compliance officer and attorney at BMIS, a significant senior officer position for which she collected millions of dollars. She was also a compliance officer and attorney for Cohmad Securities, which was co-owned by her uncle and helped bring investors to BMIS.[2][8][9] She was responsible for ensuring that BMIS complied with its legal and regulatory obligations, and she signed documents assuring the SEC that BMIS's business records were truthful and accurate.[8][10] In fact, however, while the documents certified to the SEC that BMIS had 23 clients and $17.1 billion under management, it in actuality had 4,900 customers with a nominal $68 billion in investments.[8]
At the same time, Shana Madoff took prominent positions in industry organizations. She served on the Executive Committee of the Compliance & Legal Division of the Securities Industry Association, which merged with another industry organization to become SIFMA, the lobbying arm of the industry, in November 2006.[2][2][5][11] She then became an active member of the Executive Committee of SIFMA's Compliance & Legal Division, while her father served on SIFMA's board of directors.[5][12] She resigned that position after her uncle's arrest.[12] She also served on the compliance advisory committee of FINRA, a securities industry "self-regulatory organization".[3]
Madoff scandal
Subsequent to the Ponzi scheme in the Madoff investment scandal becoming public, a spokesman for Shana Madoff said she had "no prior knowledge of the horrific fraud perpetuated."[13]
She is married to Eric Swanson, an attorney and a former Assistant Director of the Office of Compliance Investigations and Examinations at the SEC, the securities regulator, whom she met in April 2003.[2][5][14] She and Swanson met originally during an SEC examination of whether Bernie Madoff was running a Ponzi scheme, and the two started a regular correspondence; during 2003, Swanson sent Peter Madoff several regulatory requests.[2][15][16][17][18][19]
In March 2004, SEC lawyer Genevievette Walker-Lightfoot was reviewing Madoff's firm and raised questions to Swanson (who was her boss's supervisor) about unusual trading at one the Madoff funds; she was told to instead concentrate on an unrelated matter.[20][21] Swanson and her boss asked for her research, but did not act upon it.[21]
In February 2006, Swanson was emailed by Assistant Director John Nee that the SEC’s New York Regional Office was investigating a complaint that Bernard Madoff might be running "the biggest Ponzi scheme ever."[15] In April 2006, Swanson informed John McCarthy, Associate Director in the SEC Office of Compliance Inspections and Examinations, of his relationship with Shana Madoff, and McCarthy was very upset.[15][16] When McCarthy found out later that month that the relationship was still continuing, and confronted Swanson about it, Swanson came clean and McCarthy was again extremely upset.[16] Swanson left the SEC on September 15, 2006.[2][22]
The SEC closed its investigation of Bernie Madoff in 2006. In 2009, after the scandal broke, SEC Inspector General H. David Kotz investigated, and concluded that there was no evidence that Swanson's romantic relationship with Shana Madoff influenced the closing of the SEC investigation of Madoff.[23][24] He did conclude, however, that: "Swanson's communication with Shana during the period of time he was engaged in a cause examination of her uncle and father's firm, created the appearance of a potential conflict of interest."[25]
Swanson left the SEC on September 15, 2006.[2][22] Swanson and Shana Madoff became engaged on December 8, 2006.[2][26]
The September 2007 wedding of Shana Madoff and Swanson was attended by Lori Richards, the SEC's Director of Compliance Investigations and Examinations, who oversaw Swanson at the SEC.[2][14][27][28] In 2008, Bernard Madoff spoke at a business roundtable meeting of his "very close" relationship with an SEC lawyer, and chuckled: "my niece even married one".[29][30] In April 2009, Richards recused herself from the Madoff investigation.[27] Swanson is now general counsel at BATS Trading, the third-largest U.S. stock exchange.[31]
Shana Madoff's uncle Bernard pleaded guilty to federal charges against him, following the Madoff investment scandal becoming public, in March 2009. He was sentenced to 150 years in jail. Her father, the chief compliance officer of BMIS who was her boss at the company, pleaded guilty in July 2012 to fabricating documents to evade taxes and to help BLMIS escape SEC scrutiny. He was sentenced to 10 years in jail.[8][13] As part of her father's forfeiture deal with the Justice Department, the $2.3 million in proceeds from selling Shana's five-bedroom East Hampton, New York, weekend house was surrendered.[8]
In October 2009, court-appointed trustee Irving Picard charged in a civil lawsuit that she played a role in filing a January 2008 form that inflated the assets that the Madoff firm in fact had.[32] Picard sued her and her father and two cousins (Mark Madoff and Andrew Madoff) for what he said was $198.7 million of misappropriated customer money while they were executives of BMIS, alleging that had they done their jobs honestly the scheme might never have succeeded or continued as long as it did.[10] Picard said:
It would seem impossible for her to carry out her compliance duties, year in and year out, without questioning or considering whether BLMIS's IA [investment advisory business] was a fraud. Either [she and her father] failed completely to carry out their required supervisory/compliance roles, or they knew about the fraud, but covered it up.[8]
She called the claim baseless, and said she had no knowledge of the scheme.[10]
In 2012, U.S. Attorney Preet Bharara stated: "We are not yet finished calling to account everyone responsible for the epic fraud of Bernard Madoff and the epic pain of his many victims."[8] Columbia Law School Professor John Coffee, referring to Shana and her cousin Andrew, said: "The prosecutors ... have done the low-hanging fruit; they are now reaching to the medium-level fruit… Beyond the two kids, I do not know how much farther they will want to go."[8] Coffee said:
Prosecutors can use the same charges as they did against her father, maybe not seeking 10 years, but I could see them giving her the choice of pleading to a felony conviction on the same grounds. She is a lawyer; lawyers don't get the benefit of the doubt. They could say you knew this [SEC filing] was false, even if you did not know it was a Ponzi scheme.[8]
References
- ^ Buiso, Gary (January 19, 2013). "Bernie Madoff's prison-bound brother Peter Madoff parties at granddaughter's bat mitzvah after judge postpones incarceration". New York Post. Retrieved February 14, 2013.
- ^ a b c d e f g h i j Investigation of Failure of the SEC to Uncover Bernard Madoff's Ponzi Scheme. Diane Publishing. 2010.
- ^ a b c d Jerry Oppenheimer (2009). Madoff with the Money. John Wiley & Sons.
- ^ a b Peter J. Sander (2009). Madoff: Corruption, Deceit, and the Making of the World's Most Notorious Ponzi Scheme. Lyons Press.
- ^ a b c d Williamson, Elizabeth (December 22, 2008). "Shana Madoff's Ties to Uncle Probed". Wall Street Journal. Retrieved February 15, 2013.
- ^ Kieran Crowley (April 13, 2009). "Jail for Dummies; Madoff Kin Seek Prison-Surivival Class". New York Post. Retrieved February 19, 2013.
- ^ Erin Arvedlund (2009). Too Good to Be True: The Rise and Fall of Bernie Madoff. Penguin.
- ^ a b c d e f g h i Allan Dodds Frank (July 2, 2012). "The Madoff saga is far from over". Fortune. Retrieved February 15, 2013.
- ^ O. C. Ferrell, John Fraedrich, Linda Ferrell, Ferrell (2012). Business Ethics: Ethical Decision Making & Cases. Cengage Learning.
{{cite book}}
: CS1 maint: multiple names: authors list (link) - ^ a b c Grant McCool, Gerald E. McCormick, Carol Bishopric (October 3, 2009). "Trustee sues Madoffs who helped run firm". Reuters. Retrieved February 14, 2013.
{{cite news}}
: CS1 maint: multiple names: authors list (link) - ^ Jerry Oppenheimer (2009). Madoff with the Money. John Wiley & Sons.
- ^ a b Raymond Beresford Hamilton (2009). The Road To America's Economic Meltdown.
- ^ a b Barlyn, Suzanne (December 23, 2008). "Madoff Case Raises Compliance Questions". Wall Street Journal. Retrieved February 15, 2013.
- ^ a b Nigel Da Costa Lewis (2012). The Fundamental Rules of Risk Management. CRC Press.
- ^ a b c U.S. SEC Office of Investigations (August 31, 2009). "Investigation of Failure of the SEC to uncover Bernard Madoff's Ponzi Scheme (Public Version); B. Swanson's Initial Contact with Shana Madoff for SEC Office of Investigations Investigation of the SEC to Uncover Madoff Ponzi Scheme". Retrieved February 15, 2013.
- ^ a b c "E-Mails Reveal Internal Drama at SEC Over Maddof Firm". Fox Business. March 4, 2006. Retrieved February 15, 2013.
- ^ Deborah Hart Strober, Gerald Strober, Gerald S. Strober (2009). Catastrophe: The Story of Bernard L. Madoff, the Man Who Swindled the World. Phoenix Books, Inc.
{{cite book}}
: CS1 maint: multiple names: authors list (link) - ^ Alexander Davidson (2010). How the Global Financial Markets Really Work: The Definitive Guide to Understanding International Investment and Money Flows. Kogan Page Publisher.
- ^ Charles Gasparino (December 15, 2008). "Madoff Victims Claim Conflict of Interest at SEC". CNBC. Retrieved February 15, 2013.
- ^ Zachary A. Goldfarb (July 2, 2009). "SEC Investigator Raised Madoff Concerns Years Ago, Was Asked to Look Elsewhere". Washington Post. Retrieved February 15, 2013.
- ^ a b Pressler, Jessica (July 2, 2009). "SEC Lawyer Raised Questions About Madoff Back in 2004". New York Magazine. Retrieved February 15, 2013.
- ^ a b Sandler, Linda (December 22, 2008). "Facebook Removes Madoff Web Page After Jeers, Cheers". Bloomberg. Retrieved February 15, 2013.
- ^ Danny Schechter (2010). The Crime of Our Time: Why Wall Street Is Not Too Big to Jail.
- ^ "Report Details How Madoff’s Web Ensnared S.E.C.", by David Stout, September 2, 2009, The New York Times
- ^ Al Lewis (September 12, 2009). "True love can never be regulated". The Denver Post. Retrieved February 19, 2013.
- ^ "Unlikely Player Pulled Into Madoff Swirl", by Stephen Labaton, December 18, 2008, The New York Times
- ^ a b Laura Strickler (April 6, 2009). "SEC Compliance Official Recused on Madoff". CBS News. Retrieved February 19, 2013.
- ^ Clifford J. Alexander, Arthur C. Delibert, Catherine S. Bardsley (1994). Money Manager's Compliance Guide. Thompson Publishing Group.
{{cite book}}
: CS1 maint: multiple names: authors list (link) - ^ Brian Ross and Joseph Rhee (December 16, 2008). "SEC Official Married into Madoff Family". ABC News. Retrieved February 26, 2013.
- ^ Jerry Oppenheimer (2009). Madoff with the Money. John Wiley & Sons.
- ^ David Serchuk (December 20, 2008). "Love, Madoff And The SEC". Forbes. Retrieved February 15, 2013.
- ^ Rodney Stich (2008). America's Housing and Financial Frauds. Silverpeak Enterprises.