HARRY MARKOPOLOS LETTER TO SEC PDF

Harry Markopolous is an independent fraud investigator and the SEC regarding Madoff back in and wrote them this letter in Harry Markopolos spotted Bernard Madoff’s $65bn Ponzi scheme years He approached the securities and exchange commission (SEC) as. Harry M. Markopolos (born October 22, ) is an American former securities industry Markopolos has criticized the SEC for both failing to discover the Madoff fraud despite repeated tips, and for failing to investigate properly the larger.

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In a small Massachusetts town, American fund manager Harry Markopolos lived in fear of his life.

Harry Markopolos’s letter to SEC regarding Madoff

A self-confessed maths geek, he had marjopolos the secret of Wall Street’s biggest conman. Dismissed as a misguided obsessive until Madoff’s eventual confession, he became increasingly anxious for his safety. Here was a man that wiped out thousands of families,” says Markopolos, who was afraid both of Madoff and of the tame “feeder funds” that fed him customers’ money.

What’s going to happen to their lifestyles?

They’re all going to be ruined financially, they’ll all be sued and, hopefully, many of them will go to jail. What will people do to protect their lifestyles? A quantitative financial specialist with an legter for the numbers behind complex derivatives, Markopolos smelt a rat about Madoff Investment Securities as far back as when his boss at Boston-based Rampart Investment Management asked him to create a product that could provide similarly stellar returns to the astonishingly consistent numbers produced by Madoff.

And the risk-return ratios had never been seen in human recorded history. They were off the charts.

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It’s easy to say so with hindsight. But Markopolos was shouting the same thing for years — not just once, but continually. He approached the securities and exchange commission SEC as early as He contacted politicians harey badgered journalists to write about Madoff, succeeding in getting a couple of business magazines to publish sceptical stories.

Harry Markopolos’s letter to SEC regarding Madoff | Elite Trader

So why did nobody take any notice? But also, he says, it was unthinkable.

Madoff, a respected Wall Street name, kept his investment management business very quiet, beneath his legitimate market-making operation. Tall, lean, in an immaculate cream suit and pink shirt, Markopolos, 53, cuts a credible figure, although he talks with a degree of utter certainty that can seem, at times, unnerving. A father of three young boys, he has been criticised as an obsessive and a self-publicist, while some have wondered if he was motivated by a financial bounty, which he denies.

The Wall Street Journal, which did nothing with Markopolos’s dossier on Madoff for two years, recently patronised him as “a little bit nuts”. You have to have a firm belief in markopoos core values and you have to be willing to risk it all to do what’s right. He’s clearly relishing elements of his new-found notoriety.

The man who blew the whistle on Bernard Madoff

Giving evidence before a congressional committee, he says, was thoroughly enjoyable, and he likes the interest that movie scriptwriters have shown in his story — perhaps, he suggests, Nicolas Cage could portray him as a “nerd with a hard edge”. He quit fund management in ltter pursue fraud investigations full-time and was presented with a silver whistle last year by Boston’s Security Analysts Society.

But Markopolos stresses that he wasn’t the only person who was suspicious. He believes Madoff’s more financially astute clients — feeder funds and hedge funds — chose not to look too closely.

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Some, Markopolos thinks, knew that Madoff was dubious but believed he was “front-running” by using advance knowledge of clients’ trades from his stockbroking business to insider letger his way to success. They knew something was wrong with Madoff and they stayed away hary him,” says Markopolos, who compares the fraudster’s lack of subtlety to somebody running through Times Square stark naked in the middle of a summer’s day.

Now serving a year sentence at a lteter prison in North Carolina, Madoff has prompted a searching self-examination and a series of reforms at the SEC. Markopolos advocates a list of further changes — including moving the agency from Washington to New York, axing lawyers in favour of experienced financiers, improving databases and copying the tax authorities markopilos offering a share of recovered funds to whistleblowers.

He remains wary over safety, claiming that Madoff’s clients included Russian mafia and South American drugs cartels. And he wastes few words describing his view of Wall Street’s most notorious crook, describing the year-old as “evil”.

Harry Markopolos – Wikipedia

He would show up at weddings, funerals. At funerals, he would put his arm round the grieving widow and say ‘I’ll take care leter you’ and of course he did, he’d wipe her out,” says Markopolos. Everybody thought of him as nice uncle Bernie. But he was a predator.