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Madoff Whistleblower Slams SEC's 'Financial Illiteracy'

By Jason Farago, Newser Staff

Posted Feb 4, 2009 6:47 AM CST

(Newser) – The fraud investigator who tried for a decade to convince the SEC to investigate Bernie Madoff will deride the board's "financial illiteracy" before a Congressional panel today, according to prepared testimony obtained by the Wall Street Journal. Whistleblower Harry Markopolos will also testify that investigating Madoff "posed great danger" to investigators, reports the New York Times, and that he feared for his life. In 2005 Markopolos submitted a huge dossier to the SEC concerning Madoff's Ponzi scheme, to no effect.

The SEC "is nonfunctional and, as witnessed by the Madoff scandal, is harmful to our capital markets and harmful to our nation’s reputation as a financial leader,” Markopolos' testimony reads.

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Besieged money manager Bernard Madoff arrives at Federal Court in New York, Wednesday, Jan. 14, 2009. (AP Photo/Stuart Ramson)

Fraud investigator Harry Markopolos has harshly criticized the SEC for its "financial illiteracy" in failing to investigate the Madoff scandal despite years of prompting. (AP Photo/Stuart Ramson)

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Bernard Madoff was one of the most powerful men on Wall Street and in a position to easily end our careers or worse. - Harry Markopolos, independent investigator

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COMMENTS

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Showing 3 of 3 comments

whtmountain

Feb 18, 2009 11:56 PM CST

There was a time when the rich and the famous invested in this nation. They built universiities, libraries, hospitals, donated lands for parks, ensowed the arts, built museums, gave to charities and promoted education and scientific research. These were Americans who were proud of this great nation and believed they could make a difference - ! Now the rich and the shameless evade their taxes bilk the American people of billions and hide their money in Swiss banks? This is just pathetic! What is even more pathetic is that they will get by with it!

Guest

Feb 6, 2009 6:12 AM CST

This really makes me proud of an agency that is supposed to check up on Wall Street organizations. 10 years of being told there were questionable issues with Madoff and no one apparently pays attention. Our tax money at work!

Newser001

Feb 3, 2009 9:51 PM CST

Its about damn time! It doesn't take a rocket scientist to know when something is seriously broken and dysfunctional...

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Wall Street Journal (Source Grid »)
New York Times (Source Grid »)

Markopolos tears into SEC for 'abject failure'
Telegraph (UK)

The 2005 documents that show Markopolos was right
Time

Crime & Courts • Money

investigation • fraud • SEC • Ponzi scheme • whistleblower • Bernard Madoff • Harry Markopolos

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