It's not my fault: Madoff edition

THE SEC WATCHDOG WHO MISSED MADOFF

The Securities and Exchange Commission's New York watchdog, under fire for failing to uncover Bernard Madoff's alleged $50 billion Ponzi scheme - despite a dead-on tip by a whistleblower - yesterday tearfully defended herself, arguing that she and the agency did the best job possible.

"Why are you taking a mid-level staff person and making me responsible for the failure of the American economy?" an upset Meaghan Cheung, with eyes tearing up, told The Post.

"I worked very hard for 10 years to make a career, and a reputation, and that has been destroyed in a month," said Cheung, who was the SEC's branch chief of the New York enforcement division during that unit's earlier probe of Madoff's brokerage business.

The 37-year-old has been singled out by whistleblower Harry Markopolos as the woman who failed to detect the scam despite his lengthy warnings. It was Cheung who signed off on a 2006 SEC investigation that effectively gave Madoff the all clear.

First off, you are a Branch Chief. That's not mid-level. Secondly, you received extremely specific warnings about the exact type of scheme Madoff was running and you failed to even come anywhere close to finding out what happened, in fact you said everything was on the level. Ponzi schemes are possibly the easiest fraud schemes to figure out and bust. The fraud behind a Ponzi scheme is that they don't have the amount of money or holdings that they say they do. Whether or not they are telling the truth is a matter of you looking at what they claim they hold and then going to the custodian/banks who are holding all that money/filthy lucre and seeing if the numbers match up. You couldn't even do that.

Boo hoo, you fucked up horrifically. Of course your career should take a drubbing. Despite a detailed map, flashlight, and a sherpa, you couldn't hack it up the mountain. Maybe you're an idiot, maybe you didn't want to take on the guy who was buddy-buddy with everyone important in the financial industry, including the SEC. Either way you told everyone the guy who defrauded people for $50 billion was squeaky clean, despite him running one of the oldest, most obvious, and most easily verifiable scams in the books. You didn't notice any of this, but it wasn't your fault. Thanks for taking responsibility and showing so much dignity, somewhere there's a four year old who's embarrassed for you.