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SEC Employees Spend Time Surfing Porn

From ABC News:

Securities and Exchange Commission Chair (SEC) Mary Schapiro

SEC and Pornography: Workers Spent Hours on Porn Sites Instead of Stopping Fraud

Gov’t Report Finds Securities and Exchange Commission Employees Surfing Pornographic Websites at Work

By JONATHAN KARL

April 22, 2010—On a day when President Obama argued for more government regulation over the financial industry, a new government report reveals that some high-level regulators have spent more time looking at porn than policing Wall Street.

The Securities and Exchange Commission is supposed to be the sheriff of the financial industry, looking for financial crimes like Bernard Madoff’s Ponzi scheme. But the new report, obtained by ABC News, says senior employees of the SEC spent hours on the commission’s computers looking at sites like naughty.com, skankwire, youporn, and others.

The investigation, which was conducted by the SEC’s internal watchdog at the request of Sen. Chuck Grassley, R-Iowa, found 31 serious offenders over the past two and a half years. Seventeen of the offenders were senior SEC officers with salaries ranging from $100,000 to $222,000 per year.

Eight Hours a Day Spent on Porn Sites

One senior attorney at SEC headquarters in Washington spent up to eight hours a day accessing Internet porn. When he filled all the space on his government computer with pornographic images, he downloaded more to CDs and DVDs that accumulated in boxes in his offices.

An SEC accountant attempted to access porn websites 1,800 times in a two-week period and had 600 pornographic images on her computer hard drive.

Another SEC accountant attempted to access porn sites 16,000 times in a single month.

In one case, the report said, an employee tried hundreds of times to access pornographic sites and was denied access. When he used a flash drive, he successfully bypassed the filter to visit a "significant number" of porn sites.

The employee also said he deliberately disabled a filter in Google to access inappropriate sites. After management informed him that he would lose his job, the employee resigned.

A similar SEC report for October 2008 to March 2009 said that a regional supervisor in Los Angeles accessed and attempted to access pornographic and sexually explicit Web sites up to twice a day from his SEC computer during work hours.

Porn Problem Began as Economy Collapsed

Ironically, the report says most of these cases began in 2008, just as the financial system began to collapse. The same SEC officers who should have been safeguarding the economy were instead spending their working hours surfing the Internet for pornography, and the problem hasn’t stopped.

The most recent case cited in the report is from just four weeks ago.

Obviously the only answer is to give these people more power.

This article was posted by Steve on Friday, April 23rd, 2010. Comments are currently closed.

11 Responses to “SEC Employees Spend Time Surfing Porn”

  1. BillK says:

    This was previously reported months ago, but is now confirmed in a new report.

    From the Your Tax Dollars at Work file at the Associated Press:

    SEC staffers watched porn as economy crashed

    WASHINGTON (AP) – Senior staffers at the Securities and Exchange Commission spent hours surfing pornographic websites on government-issued computers while they were being paid to police the financial system, an agency watchdog says.

    The SEC’s inspector general conducted 33 probes of employees looking at explicit images in the past five years, according to a memo obtained late Thursday by The Associated Press.

    The memo says 31 of those probes occurred in the 2 1/2 years since the financial system teetered and nearly crashed.

    It was written by SEC Inspector General David Kotz in response to a request from Sen. Charles Grassley, R-Iowa.

    The memo was first reported Thursday evening by ABC News. It summarizes findings of past inspector general probes and reports some shocking findings:

    A senior attorney at the SEC’s Washington headquarters spent up to eight hours a day looking at and downloading pornography. When he ran out of hard drive space, he burned the files to CDs or DVDs, which he kept in boxes around his office. He agreed to resign, an earlier watchdog report said.

    – An accountant was blocked more than 16,000 times in a month from visiting websites classified as “Sex” or “Pornography.” Yet, he still managed to amass a collection of “very graphic” material on his hard drive by using Google images to bypass the SEC’s internal filter, according to an earlier report from the inspector general. The accountant refused to testify in his defense and received a 14-day suspension.

    Seventeen of the employees were “at a senior level,” earning salaries of up to $222,418.

    – The number of cases jumped from two in 2007 to 16 in 2008. The cracks in the financial system emerged in mid-2007 and spread into full-blown panic by the fall of 2008. …

    http://www.9news.com/money/article.aspx?storyid=137419

    $222,418 to watch porn.

    Where else can you get a job like that?

    • canary says:

      The media didn’t tell the statistics 1 1/2 years under Obama score.
      May have been more to those all nighters the Democrats staying up changing the health bill behind the Republicans backs. Pelosi may get some rest now.

  2. Right of the People says:

    What in the heck is the IT department of the SEC doing? DHS even blocks E-bay and other shopping sites.

    Thank God at least I can still get to Hamsterdance.

    Everyone they’ve caught should be fired at the very least and if any of it is kiddie porn, they should be prosecuted.

    You have to remember these with the same morons who were warned numerous times about Bernie Madoff and did nothing. Must have been at I’m_a_sick_f**k.com.

  3. proreason says:

    This isn’t particularly surprising.

    Everybody knows that anything you do on your computer is traceable. Just yesterday, it was also published that all copiers and faxes made since 2002 have a hard drive that has an image of everything that machine handled…just in case you used one for copying something with your SSN or financial account numbers.

    Everybody also knows that every employer has rules against using company computers for non-company business.

    So it takes a particularly stupid person to do something as outrageous as surfing porn on a company computer on company time.

    But in this case, they were government employees.

    So that explains it.

  4. Petronius says:

    “high-level regulators . . . senior employees . . . . Seventeen of the offenders were senior SEC officers with salaries ranging from $100,000 to $222,000 per year. One senior attorney at SEC headquarters . . . .”

    Sounds like these were Schedule C political appointees or SES and their staffers and aides in excepted service. Not ordinary civil service grunts.

    In other words, they are Nerobama’s people/Democrats.

  5. proreason says:

    “Ironically, the report says most of these cases began in 2008, just as the financial system began to collapse”

    Maybe not so ironically.

    As GS and Soros brought down the financial system, the people who were supposed to be regulating them must have realized that their jobs were on a short leash. Since they were going to be fired anyway, the normal bonds of good judgement were loosened.

    Or maybe the porn stars just happened to get better looking while GS and Soros tanked the economy. Kinda like the biggest decline in the S&P 500 in an election cycle (by a factor of 2) just happened to occur right on time to get Obamy elected.

  6. confucius says:

    I used to fantasize quitting and working for the Post Office. Clearly, I was wrong.

  7. jackal40 says:

    Well, I’ll bet $5 that there will be no prosecutions of any of these senior SEC people – especially the lawyers. If we’re lucky, they will quietly vanish – but more likely they’ll retire and draw their federal pension.

  8. canary says:

    Michelle Obama had Glee to the childrens easter egg race, after Glee members posed for Vogue in sexually clad outfits.

  9. joeblough says:

    They probably do less harm with their hands under their desks.

  10. MinnesotaRush says:

    And these were the “essential” government workers.


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