Breaking: The Markopolos File

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.

The World’s Largest Hedge Fund is a Fraud

by Harry Markopolos

SEC Submission Nov. 7 2005

via The Wall Street Journal Dec. 18 2008

Case Closing Recommendation

SEC Division of Enforcement

Nov. 21 2007 (i.e. 2 years 2 weeks later)

Chasing Bernard Madoff

by Gregory Zuckerman

The Wall Street Journal Dec. 18 2008

Comments

[John McLeod:]

Even so, it's likely all the victims will be made whole. Just launder $50+ billion of TARP money through CIPC and you've achieved the perfect taxpayer funded crime. Bet it's a done deal over the holidays and Madoff is pardoned even before they spring Conrad Black.

2008 Dec 18 09:15 AM

[User 322147:]

the guy was spot on, genius and passionate. but I wonder why he didn't go to the WSJ -- a reporter would have LOVED this story - trying to bring down the world's largest ponzi w/ a "respected" NYC wall street guy. I'd love to ask harry if he ever considered this route since someone high up at the SEC appears to be putting up road blocks. would have been an award-winner. tough to look back I suppose...

2008 Dec 18 12:00 PM