Markopolos criticized the SEC harshly for ignoring his Markopolos testified he ( anonymously) sent a package of. Thank you for the opportunity to testify today before this Committee on the subject of the “Madoff Ponzi Scheme.” I will refer to Mr. Bernard. Harry Markopolos. Thank you, Mr. Chairman. Good morning. Thankyou for inviting me here to testify before your committee todayregarding my.
|Published (Last):||16 April 2018|
|PDF File Size:||2.52 Mb|
|ePub File Size:||8.48 Mb|
|Price:||Free* [*Free Regsitration Required]|
Bernie Madoff Sleuth Harry Markopolos Warns of 3 New Ponzi Scams – ABC News
In front of the House Financial Services Committee hearing, the former investment manager told how his nine years of repeated warnings to SEC enforcement officials went ignored and how they dismissed his detailed “red flag” reports.
Read “Bernie Madoff’s Victims: Why Some Have No Recourse. The whistle-blower said in written and oral testimony that he and his associates did their best “to stop the most complex and sinister fraud in American history,” but that no one at the SEC cared. Kanjorski, chairman of the Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises, listened to by far the most damning explanation of how the government missed Madoff’s crime for decades.
The hearing was the committee’s second in a series to narry guide the most substantial rewrite of the laws governing the U.
Ultimately, Markopolos asked the committee to “restructure” the SEC, calling it “nonfunctional” and “harmful to our nation’s reputation as a financial leader. Markopolos, who said that he feared for the safety of his family’s life prior to Madoff’s arrest, read parts from his nearly page written description of the SEC’s “investigative ineptitude” and “financial illiteracy.
Markopolos described the crooked returns as “the equivalent of Major League Baseball player batting. He said there were at least 14 feeder funds. Madoff’s greatest talent, the witness indicated, was his use of a “hook” or lure to play “hard to get” and the false security of exclusivity, a hallmark of a Ponzi scheme. In a story that seemed part financial doctoral thesis and part financial thriller, Markopolos told of his years of toil markopilos the Madoff case, with often “disastrous meetings” with SEC enforcement chiefs.
It was in when Markopolos wrote his now famous and lengthy report detailing Madoff’s giant Ponzi scheme and pointing out 29 red flags.
He sent it to the SEC, and nothing happened. But when he finally met the SEC’s Boston branch chief, Mike Garrity, who had a willingness to “think outside the box,” he felt some hope. Garrity, he said, understood Madoff’s impossible returns, but the problem was location: Madoff was not in the New England region. Were jurisdiction not a problem, “he would have had an inspection team inside Madoff’s operation the very next day,” Markopolos said.
Ed Manion, a year SEC-certified financial analyst, also urged Markopolos to continue his investigation. Manion, he said, was the “only one who understood [Madoff’s] threat to the public. Unfortunately, Markopolos said, his report was sent down to the SEC’s New York branch chief Meaghan Cheung, whom he said “never grasped” the concepts “nor was the slightest bit interested in asking questions.
At that point, Markopolos decided to go to makopolos press.
He told the committee he went to a reporter at the Wall Street Journal, John Wilke, but the editors never approved an investigative piece, so things went back to the SEC’s Cheung, and there it stopped.
Interestingly, Markopolos said he never went to the Financial Industry Regulatory Authority FINRAa nongovernmental regulator that markoplos 5, brokerages, out of fear for his safety: In the marokpolos half of his testimony, both oral and written, Markopolos outlined his recommendations for fixing the SEC.
Harry Markopolos – Wikipedia
Markopolos said that “right now investors are afraid. In a backhanded compliment, Markopolos said the SEC is a “bad regulator, but the best of a very sorry lot,” though at one point he also suggested markoppolos it might be testimny to disband it or merge it with another agency. The bigger fix, he said, was to create one “super regulatory agency” and one national banking regulator, thereby filling regulatory gaps and duplication.
See the top 10 financial collapses of See the worst business deals of Robert Chew is a former investor with Madoff via a feeder fund.
He lives in Colorado.