Madoff Whistleblower ~feared for his safetySubmitted by Liberty_Belle on Wed, 02/04/2009 - 11:54
The man who repeatedly tried to blow the whistle on Bernard Madoff's $50bn (£34.7bn) fraud will this morning brand regulators at the US Securities and Exchange Commission as "inept" and "financially illiterate".
In a damning written testimony prepared for Congress, where he will be appearing before the House financial services committee, Harry Markopolos says he feared for his safety during a nine-year campaign to unmask Mr Madoff, one of Wall Street's grandees and a former chairman of the Nasdaq stock exchange. Mr Madoff confessed in December to running "a giant Ponzi scheme" which faked returns for thousands of investors built over several decades.
Mr Markopolos, a Boston accountant, says he waged the equivalent of a military campaign, using tip-offs and intelligence reports from field officers, to build the case against Mr Madoff, but when he passed his concerns to the SEC he was repeatedly "dismissed and ignored". He says: "It led me to conclude that the SEC securities lawyers, if only through their ineptitude and financial illiteracy, colluded to maintain large frauds such as the one to which Madoff later confessed."