SEC in the spotlight on Madoff fraud. A Congressional hearing opens today as to how Madoff's $50B fraud managed to escape detection by the SEC and other regulatory bodies. Madoff's investment firm was examined at least eight times in 16 years by the SEC and other regulators, often armed with reasons to be suspicious. The SEC received emails from a hedge fund calling Madoff's business practices 'highly unusual,' while an industry-run watchdog reported in 2007 that parts of Madoff's business appeared to have no clients. Madoff himself was interviewed by the SEC at least twice, yet no one caught on to the $50B Ponzi scheme he was operating.

SEC Must `Defend Existence' as Lawmakers Examine How Madoff Went Unchecked The U.S. Securities and Exchange Commission may come under fire from lawmakers today for failing to quash Bernard Madoff’s alleged $50 billion Ponzi scheme after an investor alerted the agency to the suspected fraud.