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SEC IG Report: George Demos Pimped Peter Sivere

Posted by Larry Doyle on January 28, 2010 9:02 AM |

Who is George Demos? A former enforcement lawyer in the New York office of the SEC, currently running for Congress from Long Island.

Who is Peter Sivere? A former compliance employee at JP Morgan.

Sivere crossed paths with Demos in 2004 while providing information related to an investigation of questionable mutual fund trading activity. In the midst of Sivere’s engagement with the SEC, his confidence was violated. I highlighted this reality the other day in writing, “The SEC Pimped Peter Sivere.”

Who at the SEC blew Sivere’s cover? Today we learn it was George Demos.

Kudos to the Project on Government Oversight (POGO) for investigating this case and kudos to Politics Daily for highlighting it today in writing, Long Island Congressional Candidate Cited for Giving up J.P. Morgan Whistleblower:

George Demos is a Republican Congressional candidate from Eastern Long Island whose Web site bears the slogan “Fighting for Freedom,” and touts his service as an enforcement lawyer in the New York office of the Securities and Exchange Commission. A bio says that he “handled some of the SEC’s most significant investigations,” including that of Ponzi scheme artist Bernard Madoff, and “worked tirelessly on the cases that never made the headlines.”

But one case that never made headlines was his own: Demos’ campaign Web site and public statements omit any reference to a report last March of the SEC’s Inspector General (IG), which found he had improperly disclosed protected, nonpublic information about a whistleblower to the counsel for that whistleblower’s employer, a major Wall Street bank, JPMorgan Chase. The IG’s charges of misconduct grew out of an SEC probe that began in 2003 of JPMorgan and other big financial institutions suspected of illegal market practices.

Demos has denied he did anything improper, and his campaign declined to comment on the matter. But documents obtained by the Project On Government Oversight (POGO) — a non-partisan non-profit based in Washington — confirm that Demos was the staff attorney who was cited in the IG report for violating SEC rules. The IG referred the case to the agency’s management for possible disciplinary action, but the SEC took no action. Soon after that, Demos quietly resigned from his job and launched his bid for a seat in the House of Representatives.

I am not writing about this case because I have any sort of axe with George Demos. If he proves himself to be the best candidate for the Congressional seat and wins the election, I hope he serves our country well. That said, voters should be aware of everything in a candidate’s professional background. The fact that Demos is promoting his involvement in the massive SEC failure of the Madoff scam is reason all by itself to doubt his intellect. (Thank you hongloan)

Nor am I writing this piece in defense of Peter Sivere. Even though our tenure at JP Morgan overlapped, I didn’t know him nor do I have any sort of personal or professional relationship with him.

I am writing to shed further light on what I deem to be the incestuous nature of the Wall Street-Washington relationship.

To whom did Demos report at the SEC? Was that individual held accountable for a failure to supervise? America deserves to know.

When financial regulatory improprieties at both the SEC and FINRA are neither exposed nor properly adjudicated, a culture of negligence and incompetence develops . . . and perpetuates. Ample evidence is readily apparent that this culture is deeply ingrained within these organizations. While SEC Chair Mary Schapiro would maintain that she and her new team at the SEC are addressing this culture, I believe strongly Schapiro is the wrong person for the job because she is a product of that culture herself.

As for George Demos, he made his bed and now he needs to sleep in it. I would recommend he lift the covers and show America what transpired – not only in this case, but within the SEC as a whole.

Now that would be a real public service.

LD

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  • hongloan

    I can’t believe this kid has the audacity to brag about his experience (or shall we say lack of) with the Madoff’s investigation. What an idiot. Wasn’t that the case that exposed the incompetence of the SEC, esp in the NY region? Why on earth would he brag about his ability to lose $65BB?

    • LD

      Hongloan,

      You know what, you are right and I am far too deferential.

      As I reread that I am dumbfounded as to just how stupid he would be to highlight the fact that he worked on the Madoff investigation.

      You can’t make this stuff up.

      Thanks.

  • hongloan

    That’s your typical SEC enforcement attorney for you – incompetent and ethically challenged.

  • Lou

    Seriously, who is giving this guy advice. He thinks it is a plus to point out that he worked on the Madoff case while at the SEC. When was his name ever referenced as doing good work on the Madoff case. Well, now that he has opened that can of worms he should highlight what he did, what he learned, and everything else.

    Ultimately I think he would be well suited to sit near Patrick Kennedy in Congress. What do you think their combined IQ might be?

    • hongloan

      The Madoff scandal is what got George’s bosses all fired from the SEC. Why anyone from the SEC would want to take credit for that bumbling investigation is beyond me.

  • TeakWoodKikte

    I get where you’re coming from. Crazy. And yes you too kind.
    It is a federal offense.

  • DGB

    Agree with some of your comments but Demos should not be thrown under the bus for his actions with Madoff. The SEC has been disfunctional for decades. He was assigned to the Madoff case to find out what others had already reported – it was a huge scam. You make it sound like he has been on the Madoff case for years and was too naive to question what he was doing. Get your facts straight.

    • LD

      How did the SEC handle its Madoff investigation? It was a total disaster. Anybody within that organization that wants to draw attention to work on what was ultimately the single largest disaster in financial history and look for praise in the process is subject to being called out.

      I stand by my statement.

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  • LI Duck

    Time for Mr. Demos to go look for a real line of work and not pimp people out….

    Altschuler Will Face Bishop in November

    As the polls closed Tuesday night, Mr. Altschuler maintained a solid lead over his opponents, Chris Cox of Westhampton Beach and George Demos of Ronkonkoma. At the end of the night, unofficial Board of Elections results showed that Mr. Altschuler had won 45 percent of the 23,300 Republican votes, or 10,531 votes. Mr. Demos received 31 percent, or 7,162 votes, and Mr. Cox came in last with 24 percent, or 5,634 votes.

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  • Maurice

    Funny, jerk, how once Demos drops out of the primary, you no longer care about this non-story and about trying to inflate it into a scandal. The real scandal is just how much Tim Bishop and/or Randy Altschuler paid you to push this.

    And, again, still waiting for you to release all your records on why you were FIRED from Morgan and how deeply you were involved with the corrupt Sivere.

  • LD

    Maurice,

    Welcome to Sense on Cents. Is it a safe assumption on my part that you have not visited my site regularly?

    Additionally, rest assured I very much care about the story of a former SEC attorney outing a Wall Street whistleblower. And that is the story.

    If you had visited the site regularly you would learn that I write about a whole host of issues that I collectively define as Wall Street-Washington Incest.

    Although you will be VERY busy reading through those hundreds of linked commentaries, perhaps you may also want to read and review commentaries embedded in here, Whistleblowers.

    You make a very strong charge of scandalous behavior against me. I should not dignify it by even responding. Read the Disclaimer on the site regarding comments if you care to post here.

    In regard to my career, if you are so interested in the topic, aside from reading my bio here at the site, why don’t you go to FINRA and check the records and report back to us.

    Jerk?

  • Peter Sivere

    Maurice,

    Please read the attached Rolling Stone article. There was no scandal. George Demos left the SEC in lieu of being disciplined.

    SEC: Taking on Big Firms is ‘Tempting’, But We Prefer Picking on Little Guys

    As for Larry, where is the evidence?

    Thank You,
    Peter Sivere

    • Chico

      Funny how you only put these articles up when Demos is running. How much is Altschuler paying you? Release all your finances so we can see. While you’re at it, please release all records of how closely you served with Sivere at JPM before being fired. And Rolling Stone is hardly a news source. You can get a lifetime subscription for $12 and they’re farther to the left than Karl Marx. I’m also unaware that the SEC gives plaques to people who leave under a cloud. What’s the axe you have to grind, here?

      • LD

        Chico,

        Welcome to Sense on Cents? Never having seen you comment here previously, or at least under this name, might this be your initial visit to the site? Stay a while and feel free to subscribe. It’s all free and for the taking. Perhaps you may learn a thing or two.

        In any event, assuming that you can read, please scroll up to the comment and extensive links I left on July 7th (a mere two comments above here) regarding issues related to this specific case and the general theme of the incestuous and destructive relationship between those in Washington, including the SEC, and those on Wall Street. There are a LOT of commentaries linked there so you may be busy but given the tone of your message, you seem like the inquisitive type, so hopefully you will let us know what you think of my thoughts.

        In regard to your other comments, I will not even dignify them. I would point you — as I did Maurice — to FINRA if you care to review my record and career on Wall Street. Speaking of Maurice, he never did get back to us. Perhaps you may care to make the time and effort if you are going to throw around the aspersions you make in your comment.

        I and all the regular readers here await your response, Chico.

        You may also want to read and review the Disclaimer here specifically in regard to commenting.

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  • judyann j

    Chico (or should I say George), thanks for pointing out the time frame of articles about Demos the Pimp. As you are running again, time for a big, fat reminder just what a corrupt and unscrupulous POS you are. The people of NY CD1 have told you twice before…and this will be #3. We don’t want you, you are a fraud, NO WAY will you have this seat.
    George, you are SO disliked in this district, should you happen to win the primary (unlikely), there is NO WAY we will see you representing us in Washington.






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