Madoff whistleblower gives SEC new tips Harry Markopolos sends securities regulator two new fraud tips after informing SEC of Madoff Ponzi scheme. February 6, 2009: 8:11 AM ET Madoff whistleblower's validation NEW YORK (CNN) -- Harry Markopolos, the fraud investigator who was repeatedly rebuffed by the Securities and Exchange Commission in his efforts to blow the whistle on Bernard Madoff, Thursday presented SEC Inspector General David Kotz with evidence of two new potential cases of investment fraud. "Pursuant to an agreement with him I've handed those tips to the office of the [SEC] Chairman Mary Shapiro," Kotz told CNN. Kotz said he could not elaborate on the tips from Markopolos. Kotz and members of his staff met with Markopolos and two of his attorneys for seven hours Thursday, as part of the inspector general's investigation into the SEC's failure to uncover Madoff's alleged scam. "He's a key witness in our investigation," said Kotz. "It was a very productive meeting. We received a tremendous amount of good information." Kotz said he is still months away from issuing a report on the SEC's performance in the Madoff matter. Testifying before the House Subcommittee on Capital Markets Wednesday, Markopolos slammed the SEC's failure to heed his warnings that Madoff was a fraud. "I gift-wrapped and delivered the largest Ponzi scheme in history to them and somehow they couldn't be bothered to conduct a thorough and proper investigation," said Markopolos. Madoff remains under 24-hour house arrest at his luxury apartment on Manhattan's Upper East Side. A former Chairman of the Nasdaq Stock Market, Madoff told FBI agents he had operated a scheme that may have cost investors $50 billion, according to a criminal complaint. He faces one count of securities fraud. http://money.cnn.com/2009/02/06/news/newsmakers/markopolos_sec/index.htm
This is either good or bad. Either this Markopolis (sp?) has really been puffed up by the Madoff thing or he really does have solid evidence of other ponzi schemes. Fraud like this is rare, despite the media super-focus at the moment. I'm afraid that this guy is feeling terribly important right now and, because he has the ear of the media at right now, the SEC won't ignore any of his claims - even if they're bogus.
Madoff was a major political donor. Ask any (ex) SEC examiner and they will tell you that the very small and politically connected people and companies are left alone. You call it corruption, I call it the natural state of any government body. The SEC cannot, will not and has never been able to stop fraud. It's NOT and "independent" regulator. It is an organ of the state and the state is run by politicians who are regularly bought.
If you watch the c-span testimony before congress, they ask if there are any other Madoffs around. He responds that there is a certain billionaire... I believe this must be the same individual flytiger has been referring to and remains to be revealed. In my eyes, Markopolos is a hero; woven from a fabric from which we are sorely lacking in this society. Hope he gets a 21A bounty and more. --------------------------------------------- Not to read too much into it, but a wsj listing of Madoff's clients mentions Renaissance Technologies Corp several times. Interesting times ahead.
All I can picture, is Otis tipping Barney off, and Barney fumbling in his shirt pocket for his bullet.
Sure, and Governments trend towards corruption by their very nature - human nature. The SEC is a piece of shit just like the Federal Government. This is why the Founders advocated state and local rule over Federal. Disseminated power structures are far more difficult to consolidate and takeover. Its a good thing America trashed the Bill of Rights. That should bear even more fruit, in coming years.
You should know that SEC was created by Wall Street in order to restore public confidence in the stock market. And that is exactly what SEC did. In other words, SEC is working as intended. Well, was working as intended, since it has technically expired as an institution which restores the public's confidence in the stock market.
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