Markopolos: I gift wrapped and delivered the largest Ponzi scheme in history to the SEC

This morning, the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises is holding a hearing to assess the alleged $50 billion investment fraud engineered by Mr. Bernard L. Madoff. This is the second in a series of hearings that will help to guide the work of the Financial Services Committee and the Capital Markets Subcommittee in the 111th Congress in undertaking the most substantial rewrite of the laws governing the U.S. financial markets since the Great Depression.

Harry Markopolos, an independent financial fraud investigator for institutional investors and others seeking forensic accounting expertise, as well as a Chartered Financial Analyst and Certified Fraud Examiner, testifies.

Learn more at: http://www.speaker.gov/blog/?p=1675

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  News & Politics

[sanjosesharks65]

Markopolos is the epitome of a bad ass Nerd. That's why you go to math guys, to bring down criminals

[Anynom]

Most insightful part of his book is the chapter on the media not listening. Great line: "I always wonder in conspiracy movies why the hero just doesn't go to the press, get the truth out and it'll all be okay. Now I know, it doesn't work at all." And his heading of the chapter: "Did No One Want a Pulitzer?" The SEC is one thing but you'd think some reporter in nine years would want to blow this open.

[happytappyslappy]

Harry, modern-day Greek hero. The Recession of 2008 is what caused this scheme to collapse under its own weight... everyone's financial world imploded.

[semaptahhotep]

And as well, any government connections proving "FRAUDULANT" priorities and assaults on the public's wealth distribution!

[CccpEntertainment Kraftz]

I understand your point and have already made mine, So lets agree to disagree unless there is more evidence to talk about, good day sir

PS: imo the important thing is that a) more people realize that money itself is an outdated resources that is easily manipulated. questions need to be asked and answered regarding the financial corruption that the whole world is now paying for. Madoff is just a tip of an iceberg. We don't even know the names of master thieves who got away.

[rwa078]

I only mentioned the major banks to say that even these banks who f-up royally had employees with enough training and apparently enough access to Madoff's statements/data to smell something was not right.

Back to the point regarding 'data' being hard to come by. I disagree with you that this is what most video sources say. The PBS documentary clearly showed that the regular statements Madoff gave to his clients showed errors, fake trading tickets...veyr simple things that spelt out fraud.

[CccpEntertainment Kraftz]

major US banks are the reason there was a financial crisis as it was engineered by them and to top it all off they were then bailed out at expense of tax payer as well as got a president that backs Wall Street. Madoff is a small fry in that fiasco as all the major players are still enjoying their freedom.

Back to the point that documents were hard to come by is stated in documentary and other video sources. citing came from fund mangers directly as they were stating they did not have the data

[rwa078]

Define exclusive. you were a client with money, or a hedge fund manager representing a client, and if you wanted to invest with Madoff, you had access to enough data. That is, enough data for a financial analyst like Harry Markopolos to figure out just in few hours that it was impossible to replicate, aka a fraud. Many people on Wall Street knew Madoff was a fraud. That's why none of the major US banks invested with Madoff. You should read Harry Markopolos' book.

[happy larry]

America was build on ponzi schemes. Look at the US banking collapses- ponzi scheme collapses

[Dadutta]

they should make a movie about this guy, with this exact scene word-for-word being the crowning moment.

[fistfull1]

indict john thain rick ketchum,mary shapiro and duncan niedermyer,all complicit in the fraud,that happened on their watch