Madoff Investors Say Staffers' Porn-Surfing Makes SEC Liable

Law360, Los Angeles (January 10, 2013, 9:35 PM EST) -- Investors in Bernard Madoff's Ponzi scheme should be able to sue the U.S. Securities and Exchange Commission because staff members neglected their duties by browsing pornographic websites when they should have been investigating the swindler, an investor told the Ninth Circuit on Thursday.

Richard Gordon, a former attorney who is representing himself, cited the porn-surfing in arguing that a trial judge who dismissed the case had erred in finding the SEC was immune from liability under the “discretionary function exception” of the Federal Tort Claims Act....
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