GOVERNMENT: More SEC Scandals

Sixteen months ago, New York's Democratic Congressman Louis B. Heller began looking for skeletons in SEC's closet. Last week, after poring over 742 cases from SEC's files and calling 100 witnesses, Heller's subcommittee handed in its report. In general, it said, SEC had done "a commendable job." But in its rummaging, the committee rattled the bones of several controversial cases, said the incoming Congress should investigate further. Among the cases:

The Badger Case, involving Salt Lake City Broker-Dealer Richard C. Badger, who committed suicide in March 1951 after embezzling $648,000 from his customers. SEC examiners had found nothing wrong with...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!