Harry Markopolos’s decade-long battle to have the US Securities and Exchange Commission take at least a passing sniff at Bernard L. Madoff’s investment business gets detailed coverage Thursday in Gregory Zuckerman’s piece in The Wall Street Journal. And while Greg’s story is well worth the trouble, the unquestioned highlight is the posting of documents Markopolos submitted to the SEC in Nov. 2005 (almost six years after his initial approach).
I’ll indulge myself with one quotation, especially in light of the impending announcement that the Obama administration will nominate FINRA (formerly NASD-R) chief executive Mary Schapiro as chairman of the SEC:
Red Flag #25: ...The NASD and NASDAQ do not exactly have a glorious reputation as vigorous regulators untainted by politics or money.
OK. Now just read it. Markopolos absolutely nailed it with an astounding degree of precision. And I think you’ll agree that characterizing the SEC as The Keystone Cops does defamatory disservice to The Keystone Cops’ investigative skills.
by Harry Markopolos
SEC Submission Nov. 7 2005
via The Wall Street Journal Dec. 18 2008
SEC Division of Enforcement
Nov. 21 2007 (i.e. 2 years 2 weeks later)
by Gregory Zuckerman
The Wall Street Journal Dec. 18 2008