Professor Elam

Weekend July 14,  2012

The Burning Platform blog indicts both the futures industry and the lack of audit control in the Peregrine Futures scandal. 

Yep it's Bernie Madoff all over again. This time the CEO admits, after attempting suicide, of falsifying bank statements for many years. While auditors routinely send out statements for confirmation, the CEO supplied a false post office box. That way he was able to provide falsified bank statements to the auditors covering up what really went on. 

While burning platform charges collusion by the auditors, my guess is that this is what Barry Minkow always contended about auditors. It's easy to fool someone mesmeried with tick marks and a checklist. Just provide them something, they only ask questions when it is not provided, never about the authenticity of the document. But who knows, Madoff had a crooked CPA involved. 

Let's see that makes Madoff, MF Global, now Peregrine, how many more are out there?

Still, another example that you cannot legislate good manners, or good judgment.