Investors Who Made Off: 4 Other Ponzis

February 4, 2009

Harry Markopolis's testimony this morning would make a captivating yet depressing movie. Way back in 2000 Harry discovered that Bernard Madoff was a fraud — and it only took him four hours. He was studying Madoff's "strategy" for a competitor. Harry spent the next nine years trying to alert deaf federal officials.

Over the years he met with SEC investigators. He said they completely lacked the financial expertise to understand his warnings. Harry began to fear for his life, thanks to Madoff's power, and even described assembling evidence of the scheme with gloves, as to not reveal his identity, and dropping off the document at New York's Kennedy Library because he knew then-NY attorney general Eliot Spitzer was there.

The systemic ineptitude uncovered by this ignored whistle blower makes it easy to understand why more Ponzi schemes have been uncovered in the Madoff fallout. Here's a roundup of some of the most outrageous mini Madoffs.

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by CitizenSugar 14

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by CitizenSugar 14

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14 Comments

SRSBDC 4 years 15 weeks

That wasn't clear - they don't share your feelings is what I meant. But hey - I'd like to believe that everyone has something redeeming about them.

SRSBDC 4 years 15 weeks

Many of my friends and acquaintances have had dealings him and they don't share the same feelings but I'm glad everyone has somebody in their corner.

mydiadem 4 years 15 weeks

I disagree with you on Spitzer, my Aunt worked with him for over a decade and he did great things for the state of NY.

SRSBDC 4 years 15 weeks

Also, Ponzi schemes are not new and the only reason the recent ones are making any sort of news is because it is easy pickings for a press that has been too lazy or lacked the will to report on such issues before. A press that truly lacks the financial expertise and seemingly investigative reporting skills to find new stories - instead they prefer to jump on the band wagon while it hot.

SRSBDC 4 years 15 weeks

Contrary to popular conception the SEC employs many very capable financial strategists and attorneys. It is more than disappointing that the incompetence of a political appointee (Christopher Cox), and lack of political will (entire Bush administration) is dragging down a very good institution. No institution is perfect and the Madoff case is a clear example but the people who actually do the work at the SEC are very good at their jobs. IMO the SEC is in good hands now that the new commissioner appointed by Obama has take office. She is incrediably qualified. Eliott Spitzer is thug and a crook and many of his investigations and subsequent outings were actually investigated by the SEC - Spitzer would then jump to the press taking credit for the SEC's work.

SRSBDC 4 years 15 weeks

mydiadem 4 years 15 weeks

Of course the SEC under Bush was ineffective, is anyone really surprised?

Jazz Z 4 years 15 weeks

Sadly its not a big surprise no one listened until now. President Obama's administration seems to be much more progressive and interested in what people have to say...at least those appointees who've been cleared. I can't help but wonder if the President is consciously choosing people based, not only on their impressive resumes, but on their suspicious tax records ~ so if they can't make the grade they can at least collect back-taxes to help pay for the next bailout.stephley, I love your new avatar. It's seem so appropriate ;)

Jazz Z 4 years 15 weeks

Sadly its not a big surprise no one listened until now. President Obama's administration seems to be much more progressive and interested in what people have to say...at least those appointees who've been cleared. I can't help but wonder if the President is consciously choosing people based, not only on their impressive resumes, but on their suspicious tax records ~ so if they can't make the grade they can at least collect back-taxes to help pay for the next bailout. stephley, I love your new avatar. It's seem so appropriate ;)

Lukin 4 years 15 weeks

I hate hearing stories like this, whether it's about financial con artists like Madoff or any other criminals. How many offenders like this have to slip through the cracks before investigators start investigating tips? I know 98% of them are crap, but history pretty much shows that big cases can be cracked by little people who have paid attention all along. Somebody always knows something!