60 Minutes: Madoff whistleblower alerted the SEC with 5 seperate submissions since 2000

[sabra]

http://www.cbsnews.com/stories/2009/02/27/60minutes/main4833667.shtml?source=mostpop_story

The Man Who Figured Out Madoff's Scheme
Tells 60 Minutes Many Suspected Madoff Fraud; Says SEC Is Incapable Of Finding Fraud

<snip>

Asked how many times he sent materials to the SEC, Markopolos told Kroft, "May 2000. October 2001. October, November, and December of 2005. Then again June 2007. And finally April 2008. So five separate SEC submissions."

"And in spite of all of the things that you did, it still ended up in disaster?" Kroft asked.

"There's nothing to be proud about in this case. I feel horrible about the result. It's been a total disaster for the victims," Markopolos replied.

...

"In your first letter to the S.E.C. back in 2000, you're a little tentative. You say, 'Look, I have no hard evidence, no smoking gun,'" Kroft remarked.

"In 2000, it was more theoretical. In 2001, it was a little bit more real. By 2005, I had 29 red flags that you just couldn't miss on. By 2005, the degree of certainty was approaching 100 percent," Markopolos explained.

[Triana]

1. "incapable"? More like UNwilling. n/t

[elocs]

2. 5 separate submissions? Yes, I saw that on 60 MInutes last night. n/t

[Warpy]

3. Markopolos made one mistake last night, IMO,

in chalking the SEC's inaction up to the fact that it was staffed by lawyers who were incapable of following a financial trail (or lack of one, in the Madoff case) to a Ponzi scheme.

I think they were quite capable. I want to get Linda Thomsen's butt back into that chair in front of Congress to find out why they backed off that case. I want to find out why they backed off the Stanford case. Both were dropped right into their laps repeatedly over a period of several years and the SEC did nothing.

This wasn't incompetence. This was collusion.

[sarcasmo]

6. It would be sweet justice if they could prove collusion.

[wackywaggin]

7. Corruption at the SEC was widespread

starting at the top level, under Bush. All top level executives of the SEC along with these,"money managers" who were nothing more than con-artists need to go to prison, now!....The ammount of anger in the american society about this right now is palatable, not prosecuting Madoff and the rest of these criminals is like holding a lit match next to a powderkeg!!!:mad:

[blm]

9. *sniff* *sniff* ...smells like...... Marc Rich (IranContra-BCCI operative).

They get away with their financial crimes because they are committed in service to BushInc's illegal operations and the Fascist agenda.

Been like that for decades - and we have a few powerful Dems now involved up to their eyeballs since they decided to side with the secrecy and privilege of Poppy Bush, Jackson Stephens, and the Dubai and Saudi royals.

[glitch]

10. Reeks. People are passing out from the stench.

IOW, strongly agreed.

[Kolesar]

11. "Because they are lawyers and what they need are financial people"

...or something like that. That was the quote that really stood out for me. I also liked when he cited each calculus and linear algebra course that he had taken.

[Warpy]

12. Baloney. I'm a retired nurse in godforsaken Podunk

and can recognize a Ponzi scheme when I see it.

This was collusion.

[truebrit71]

16. That is the most important line of all....and the number one problem with the SEC...

...too many lawyers and too many bean-counters...not enough people with industry experience...

[truebrit71]

14. SEC is full of bean-counters that have little industry experience...

..they are AWESOME at quoting chapter and verse on the regs, but nowhere near as competent when it comes to gaming the system...and THAT is where the expertise needs to be...

[spanone]

4. blame the bu$h* sec....they had no intention of looking into madoff

[sarcasmo]

5. That was a great piece. Those who lost their money to Maddoff should sue the SEC.

[CountAllVotes]

8. list of "customers"

My god, 162 pages of names, etc. which includes Bank of America, Citigroup, Bank of Ireland, Morgan Stanley, CITGO, and many others that are familiar to all of us.

List of customers here:

http://www.cbsnews.com/htdocs/pdf/madoff_customer_list.pdf

:kick:

[KeepItReal]

13. This piece of "news" never asked "WHO AT THE SEC WAS RESPONSIBLE?"

I'm sure the SEC has an organization chart with names of folks they could have referenced.

They didn't even mention the lady at SEC enforcement who just quit. Was all this illegality on her watch?

[spanone]

15. that should definitely be the follow up to this story...madoff is the tip of the iceberg imho

how do we know that ANY of the wall street firms are playing by the rules????

[Kablooie]

17. He explained it at the end of the show. The SEC cleans up AFTER disasters. It doesn't stop them.