The SEC’s Report on How It Missed Madoff Is Totally in the Mail

By
Paul Kanjorksi (l), David Kotz (r)
Paul Kanjorksi (l), David Kotz (r) Photo: Getty Images

For the second day in a row, Paul E. Kanjorski, the Pennsylvania Democrat, has strongly urged the Securities and Exchange Commission to release its internal investigation into how the agency missed Bernard L. Madoff’s $65 billion Ponzi scheme before Congress votes on President Obama’s new regulatory reform package ... The S.E.C.’s inspector general, H. David Kotz ... said he intended to issue three reports “very shortly” detailing all of the investigations that the S.E.C. conducted into Mr. Madoff and Madoff-related entities since 1992 and the reasons why the agency failed to uncover the scheme. — The Times DealBook blog, today.

The Times has the letter Representative Kanjorski sent to Kotz. Through our sources,* we've gained access to the e-mails Kotz sent in reply.


From: HotsyKotzy@sec.gov
To: Kanjorski, Paul
Sent: Tue 6/14/2009 11:27 AM
Subject: Madoff report???

Totally. It's on the way, my man. Be with you in a few. Just want to make sure we cross all the T's and dot the I's!!!!

From: HotsyKotzy@sec.gov
To: Kanjorski, Paul
Sent: Tue 6/15/2009 3:34 PM
Subject: Madoff report???

Yep, just want to give it a quick spell check, I'm on the way out the door so will send in five mins.


From: HotsyKotzy@sec.gov
To: Kanjorski, Paul
Sent: Tue 6/16/2009 10:08 am
Subject: Madoff report???

Did you not get the attachment? That's weird. I'm attaching a new one in a WordPerfect doc, since I know you have those old computers.


From: HotsyKotzy@sec.gov
To: Kanjorski, Paul
Sent: Tue 6/16/2009 12:07 pm
Subject: Madoff report???

Oh, it must have been a corrupt file. No, we can't send a messenger, cause of budget cuts. We're taking the "new reality" pretty serious over here!


From: HotsyKotzy@sec.gov
To: Kanjorski, Paul
Sent: Tue 6/16/2009 12:07 pm
Subject: Madoff report???

Paul, I'm sorry, my grandma died and I'm in Dubuque at the funeral. Going to try and get someone at the office to send you the doc. It may have to wait until I get back though as people in the office aren't super tech-y. In the meantime I'm turning off my BlackBerry. Thank you in advance for your understanding.

Best,

Dave/Sent from my iPhone

*The sources in our imagination