NYT: A former investment manager is prepared to tell a House hearing on Wednesday that the Securities and Exchange Commission ignored his repeated warnings about the dealings of the disgraced financier Bernard L. Madoff.
The manager, Harry Markopolos, asserts that he submitted warnings about Mr. Madoff since 2000 and he assails the agency for ignoring his warnings or brushing them aside. “Nothing was done,” he declares, in what Dow Jones Newswires and Fox Business report is his prepared testimony.
“There was an abject failure by the regulatory agencies we entrust as our watchdog,” Mr. Markopolos says in his testimony. Mr. Madoff was arrested in December and accused of running a $50 billion Ponzi scheme.
Mr. Markopolos says his experience with most S.E.C. officials “proved to be a sytemic disappointment, and lead me to conclude that the S.E.C. securities lawyers, if only through their investigative ineptitude and financial illiteracy, colluded to maintain large frauds such as the one to which Madoff later confessed.”
Here is Markopolos' testimony. It looks like there is a lot of email evidence.
