I say this somewhat in jest as everyone who has a business knows the software, but in principal what’s wrong with having some enterprise auditing software in place that does just that – audits. Quick Books connects business owners easily to their auditors, so when we have such large sums of investor money at stake, why not, and why haven’t we explored something along this line?
With Wall Street, we have all seen what happens with algorithms written to produce the desired results and what is used to make decisions, so I think now it’s truly time to entertain some serious software with some government agencies instead of relying on paper reports. There were quite a few charity healthcare organizations affected with this situation of fraud. This year the FDA has been shamed by it’s lack of technology and now it looks as if the focus is moving to the SEC as well. Hopefully we will have some leaders at the top with some first hand knowledge of how technology can also prevent some of these disasters, as it certainly helped them occur as the folks on the other end of the stick sure had it and invested heavily in technology.
In the meantime, we have this other small investigation at National Lampoon by the SEC, small by comparison by all means but capturing media attention. The folks at Animal House don’t worry me anywhere near the issues of the big investment firms by any means. With the move for transparency today, we need to have some of this business intelligence information up front with the technology that is capable of keeping most honest. The technology is there, all we need now are end users. BD
Securities and Exchange Commission investigators discovered in 2006 that Bernard Madoff had misled the agency about how he managed customer money, according to documents, yet the SEC missed an opportunity to uncover an alleged Ponzi scheme. The documents indicate the agency had Mr. Madoff in its sights amid multiple violations that, if pursued, could have blown open his alleged multibillion-dollar scam. Instead, his firm registered as an investment adviser, at the agency's request, and the public got no word of the violations. Harry Markopolos -- who once worked for a Madoff rival -- sparked the probe with his nearly decade long campaign to persuade the SEC that Mr. Madoff's returns were too good to be true. In recent days, The Wall Street Journal reviewed emails, letters and other documents that Mr. Markopolos shared with the SEC over the years.