Investing for Organizational Sustainability

scheme because she was the firm's compliance attorney. The investigation was closed,
and Swanson subsequently left the SEC, and married Shana Madoff.
Approximately 45 per cent of institutional investors thought that better oversight by the
SEC could have prevented the Madoff fraud. Harry Markopolos complained to the
SEC's Boston office in 2000, telling the SEC staff they should investigate Madoff
because it was impossible to legally make the profits Madoff claimed using the
investment strategies that he said he used.
A similar failure occurred in the case of Allen Stanford, who sold fake certificates of
deposit to tens of thousands of people, many of them working-class retirees. In 1997,
the SEC's own examiners spotted the fraud and warned about it. But the Enforcement
division would not pursue Stanford, despite repeated warnings by SEC examiners over
the years. After the Madoff fraud emerged, the SEC finally took action against Stanford
in 2009.
In June 2010, the SEC settled a wrongful termination lawsuit with former SEC
enforcement lawyer Gary J. Aguirre, who was terminated in September 2005 following
his attempt to subpoena Wall Street figure John J. Mack in an insider trading case
involving hedge fund Pequot Capital Management; Mary Jo White, who was at the time
representing Morgan Stanley later nominated as chair of the SEC, was involved in this
case. While the insider case was dropped at the time, a month prior to the SEC's
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