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Politics: SEC Rocked By Lurid Sex-and-Corruption Lawsuit
Politics: SEC Rocked By Lurid Sex-and-Corruption Lawsuit
By Matt Taibbi
November 19, 2012

Move over, adulterous generals. It might be time to make way for a new sexual rats'nest – at America's top financial police agency, the SEC.

In a salacious 77-page complaint that reads like Penthouse Forum meets The Insider meets the Keystone Kops, one David Weber, the former chief investigator for the SEC Inspector General's office, accuses the SEC of retaliating against Weber for coming forward as a whistleblower. According to this lawsuit, Weber was made a target of intramural intrigues at the agency (which has a history of such retaliation) after he came forward with concerns that his bosses may have been spending more time copulating than they were investigating the SEC.

Weber vs. the SEC: The Full Complaint

Weber claims that in recent years, while the SEC Inspector General's office has been attempting to investigate the agency's seemingly-negligent responses in such matters as the Bernie Madoff case and the less-well-known (but nearly as disturbing) Stanford Financial Ponzi scandal, two of the IG office's senior officials – former Inspector General David Kotz and his successor, Noelle Maloney – were sleeping together.

Weber also claims that Kotz was also having an affair with a lawyer representing a key group of Stanford victims, a Dr. Gaytri Kachroo. Where the story gets really strange is where Weber claims that Maloney last year refused to meet with Kachroo as part of the Stanford investigation. By then, Kotz had stepped down as SEC IG and Maloney had replaced him as Acting IG. The complaint describes Weber confronting Maloney over the issue, asking why she wouldn't meet with the lawyer representing a key group of Stanford victims.

Maloney asked Weber to close the door to her office. Maloney told Weber that she would deny the following conversation if Weber were to repeat it.

Maloney then said that, "David [Kotz] was fucking that lady . . .

Post Comment
And here I thought it was just us surfs getting screwed.
Posted by Whitemellon November 20, 2012, 2:41 am
Geez. How do we know these officials weren't sleeping with key people from financial firms they were overseeing. Kotz could have been sleeping with Madoff or her with Stanford, and maybe the security chief recorded it all from the feeds. If I worked there I'd hate to use the bathrooms; probably a cesspool for herpes (yes, you can get it off a toilet seat). Do they leave ****** packages in a bowl on the bathroom counter for the men and, for the ladies, bottled water with squeeze tops in the stalls to freshen up between rounds? This all sounds so 80s...maybe if they came up for air once in a while, they'd figure out.
Posted by Bluetreemarie November 20, 2012, 12:47 am
See, even RS censors the proper name for rubbers...because it's the 2010s.
Posted by Bluetreemarie November 20, 2012, 12:44 am
Geez. How do we know these officials weren't sleeping with key people from financial firms they were overseeing. Kotz could have been sleeping with Madoff or her with Stanford, and maybe the security chief recorded it all from the feeds. If I worked there I'd hate to use the bathrooms; probably a cesspool for herpes (yes, you can get it off a toilet seat). Do they leave ****** packages in a bowl on the bathroom counter for the men and, for the ladies, bottled water with squeeze tops in the stalls to freshen up between rounds? This all sounds so 80s...maybe if they came up for air once in a while, they'd figure out.
Posted by Bluetreemarie November 20, 2012, 12:37 am