Madoff Whistleblower Slams SEC's 'Financial Illiteracy'

Tenacious accountant stands to make book, film money, but just wants to move on

(NEWSER) - Harry Markopolos, the accountant who began warning the feds years ago about Bernard Madoff’s Ponzi scheme, wasn’t looking for the limelight, the Boston Globe reports. Not only is he testifying before Congress—he’s also been deluged by book and movie offers. His is “a remarkably compelling story about a guy who didn’t want to be in the middle of this,” one producer said. “It’s like Cary Grant in North by Northwest.” More»

Former employee warned agency, others of 'Ponzi scheme'

(NEWSER) - A former employee of Sir Allen Stanford warned the SEC in 2003 of an “illegal Ponzi scheme” involving his firms, but regulators brushed off the allegations, the Financial Times reports. The whistleblower also told another regulatory body that one of Stanford’s companies was “engaged in a Ponzi scheme to defraud its clients,” but regulators didn’t come down on the alleged $8 billion fraud until last week. More»

But, obviously, didn't pursue it

(NEWSER) - The SEC knew that Bernie Madoff was misleading them about how he was handling his customers' money in 2006, the Wall Street Journal reports, and noted multiple violations which, if investigated, would have laid bare his Ponzi scheme. Instead, Madoff’s firm was told to register as an investment adviser, which it did, and Fairfield Greenwich, a hedge fund that placed money with Madoff, was told to disclose more information about him to investors. The inquiry was dropped. More»

(NEWSER) - The SEC's inspector general says the agency had plenty of chances to take down Bernie Madoff and whiffed on every one, Bloomberg reports. In a report released today, H. David Kotz writes that the SEC received "detailed and substantive complaints over the years to warrant a thorough and comprehensive examination” of Madoff. And yet it never performed a "competent investigation or examination." More»

Ponzi schemer will soon look small-time

(NEWSER) - If you think you’re mad at Bernie Madoff, just wait. Harry Markopolos, who blew the whistle on Madoff, says there are more baddies out there who will make good ol’ Bernie “look like small time.” While speaking at a Southampton church, the fraud investigator predicted scandals related to the $600 trillion credit-default swap market will soon come to the surface. More»