The Derailment of the SEC – Part II: An SEC Official Works Both Sides of the Street, and Betrays the Public Trust

A senior Securities and Exchange Commission official, Spencer C. Barasch, quashed an investigation in early 2005 of a $7 billion Ponzi scheme masterminded by Houston financier R. Allen Stanford—after securing a lucrative partnership with a law firm of which Stanford was a client.
 

Barasch, the top enforcement officer of the SEC’s Fort Worth regional office at the time, overruled SEC examiners who had warned him that Stanford was likely running “a massive Ponzi scheme” and had sought permission from him to open a formal investigation of Stanford and his bank. For several months prior to that decision, Barasch had been negotiating to become a partner with the Houston law firm of Andrews Kurth, which had had Stanford as a client, according to confidential Andrews Kurth emails obtained for this story. Andrews Kurth’s work for Stanford is detailed in the law firm’s confidential billing records.
                                                                                                
Federal conflict-of-interest law prohibits a government employee from participating “personally and substantially” in an official capacity in any “particular matter” that would have a direct and predictable effect on the employee’s financial interests or on the financial interests of a “person or organization with whom he is negotiating or has any arrangement concerning prospective employment.”
Continue

The Derailment of the SEC – Part II: An SEC Official Works Both Sides of the Street, and Betrays the Public Trust

A senior Securities and Exchange Commission official, Spencer C. Barasch, quashed an investigation in early 2005 of a $7 billion Ponzi scheme masterminded by Houston financier R. Allen Stanford—after securing a lucrative partnership with a law firm of which Stanford was a client.
 
Barasch, the top enforcement officer of the SEC’s Fort Worth regional office at the time, overruled SEC examiners who had warned him that Stanford was likely running “a massive Ponzi scheme” and had sought permission from him to open a formal investigation of Stanford and his bank. For several months prior to that decision, Barasch had been negotiating to become a partner with the Houston law firm of Andrews Kurth, which had had Stanford as a client, according to confidential Andrews Kurth emails obtained for this story. Andrews Kurth’s work for Stanford is detailed in the law firm’s confidential billing records.
                                                                                                
Federal conflict-of-interest law prohibits a government employee from participating “personally and substantially” in an official capacity in any “particular matter” that would have a direct and predictable effect on the employee’s financial interests or on the financial interests of a “person or organization with whom he is negotiating or has any arrangement concerning prospective employment.”

Continue

Notes:

  1. fidius reblogged this from anarcho-queer
  2. black-geek-supremacy reblogged this from the-adebisi-wombosi-identity
  3. the-adebisi-wombosi-identity reblogged this from vicemag
  4. cartmanhasassburgers reblogged this from vicemag
  5. cisfreefuture reblogged this from anarcho-queer
  6. sserialchiller reblogged this from vicemag
  7. dark4 reblogged this from anarcho-queer
  8. anarchists-for-big-government reblogged this from anarcho-queer
  9. ghostsofrobespierre reblogged this from anarcho-queer
  10. theanalyzersfanfics reblogged this from anarcho-queer
  11. sabinastormborn reblogged this from vicemag
  12. armpithairz reblogged this from anarcho-queer
  13. tr0tskitty reblogged this from anarcho-queer
  14. powerdynamics reblogged this from anarcho-queer
  15. anarcho-queer reblogged this from vicemag
  16. roaminginplace reblogged this from vicemag
  17. marijuana-needles reblogged this from vicemag
  18. janelopiad reblogged this from vicemag
  19. sliverdemon reblogged this from vicemag
  20. lolableu reblogged this from vicemag
  21. teantacles reblogged this from vicemag
  22. freeintegrated reblogged this from vicemag