Darcy Flynn, a longtime attorney at the Securities and Exchange Commission has come forward to expose SEC transgressions we have all suspected. Where there is smoke, you will find fire and we suspect the SEC is a 5 alarm fire. Scrambling to douse the flames that will destroy them once and for all.
After raising concerns internally at the SEC last year — and getting nowhere — Flynn went public and alleged in a formal whistleblower complaint that for at least 17 years the SEC “followed a policy of systematically destroying documents” related to what are known as Matters Under Investigation, or MUIs, most of which were focused on possibly illicit or illegal behavior at Wall Street firms. MUIs are the first step in investigating a case that may lead to a formal SEC inquiry.
“It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence,” Grassley said in a press release that accompanied his letter to SEC head Schapiro. “If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law.”
Read Rolling Stone’s Sept. 1 issue, Matt Taibbi broke the story of Darcy Flynn’s complaint against the SEC. It’s worth reading for its rich detail about what Flynn alleges the SEC has been doing for decades. Is it any wonder Wall Street gets a free ride when they commit serious offenses. That’s right, simply write a big check using someone else’s money (shareholders) and everything disappears. There can be little doubt the big checks also include document destructions with no admission of guilt. With no track record of complaints, its hard to figure out who are the perennial offenders. Now we will never know.
A crisis waiting for necessity. Will Flynn’s admissions finally bring about change?