Next Gen Journal

By Clint Akarmann

Bernie Madoff

This Monday, Bernard Madoff, the largest fraudster in American history, was sentenced by US District Judge Denny Chin to a maximum sentence of 150 years in prison for heading a massive Ponzi-scheme which defrauded investors of $65 billion.  Over 6,000 individuals and organizations were believed to be victimized, including many non-profit agencies.  Madoff’s actions were labeled as “extraordinarily evil” by Judge Chin, and his long prison sentence drew loud cheers and relief from the victims, struggling to recover from the eradication of their life savings.  It seemed to bring some sense of closure to what had been a long ordeal.

Yet, many people are not yet satisfied.  One law firm is suing the Securities and Exchange Commission on behalf of a few victims, alleging that the commission’s negligence in failing to apprehend Madoff leads it to be liable for the investors’ losses.  Others seek charges against Madoff’s family.  Some counter these arguments by stating that the victims were robbed by an individual, and that the government does not reimburse people who are robbed.  So here’s the question:

Should the SEC and others who failed to stop Madoff’s scheme be held liable for the harm done to investors?