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.
Madoff Whistleblower: SEC Failed To Do The Math
It was redemption of a sort for Harry Markopolos,
...who spent nearly a decade on Madoff's trail
— and whose warnings were largely ignored by securities regulators.
Madoff whistleblower blasts SEC
A whistleblower who repeatedly warned the Securities and Exchange Commission
that Bernard Madoff was perpetrating a massive investment fraud
testified Wednesday that the regulatory agency that oversees financial markets is inept,
"financially illiterate" and far too cozy with the financial titans
it is supposed to be regulating.
"The SEC is also captive to the industry it regulates
and it is afraid of bringing big cases against the largest most powerful firms,"
"Cleary the SEC was afraid of Mr. Madoff."
After at first receiving an encouraging reception from the SEC's Boston Bureau Chief, Edward Manion,
Markopolos said the New York SEC office, which supervised Boston,
blocked a further investigation.
Markopolos said the SEC is in need of a major overhaul.
Senior managers should be replaced,
lawyers should be separated from financial investigators,
and the agency should hire employees
who have years of Wall Street experience, he said.