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.