Madoff Whistleblower Slams SEC's 'Financial Illiteracy'

By Jason Farago,  Newser Staff
Posted Feb 4, 2009 6:47 AM CST
Besieged money manager Bernard Madoff arrives at Federal Court in New York, Wednesday, Jan. 14, 2009.   (AP Photo/Stuart Ramson)
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(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.