Tip of the Iceburg: Man Who Exposed Madoff Cites Government Complicity in Fraud
25 August 2009
We ask now why the economists and regulators and media said little or nothing while the frauds and bubbles were developing, then.
But what are they saying now, about the new frauds, and injustices, and the blatant manipulation of the markets wherein some traders turn in financial results that are improbable to produce without inside information and breaking the rules?
A few heroes speak out, but most of the intellectual leadership cower in the shadows, asking ‘Where is the outrage?’ And the media baits the crowd with this or that distraction, and inflames them to think whichever way it pleases.
Here is an audio interview with Harry Markopolos in which he gives his views on the Federal Reserve as a regulator, financial reform, and the ‘recovery.’ Harry Markopolos Interview with King World News
Let us start here, and now, to demand the change required. Let us begin by auditing the Fed, and refusing to tolerate the granting of more regulatory power to an institution spawned in a deception in 1913, and at the heart of so many of our financial crises ever since. The Creature from Jekyll Island: A Second Look – G. Edward Griffin (2007)
As of yet, nothing has changed. The silence is deafening.
AFP Interviews Harry Markopolos
…In May of 2000, he submitted an 8-page report to the Boston Regional Office of the Securities Exchange Commission (SEC) listing red flags and mathematical proof of a major fraud but got no reply. He re-submitted his evidence to the Boston and other SEC offices in 2001, 2005, 2007 and 2008, to no avail. By this time, Markopolos was realizing that Madoff had been operating with protection from the inside.
In late 2008, when the stock market crumbled and investors rushed in to redeem their investments, Madoff ran out of cash, turned himself in to authorities, and pleaded guilty in federal court last March 12th.
Markopolos said that all the members of his team feared for their lives during the long investigation and he for more reason than any of the others because of his visibility. He was the one who was submitting all the complaints each year, and he knew that any leak from the SEC could make him a marked man.
He explained that the “offshore feeder funds” were only one step removed from organized crime. “If organized crime knew that Madoff was stealing their money, he would have been killed. Therefore, if Madoff had ever found out that we had a team tracking him through Europe and North America and that he risked getting exposed, it was a good bet that he would have had several billion reasons to want us silenced first. To compartmentalize the damage, I was the only one who went to the SEC.”
No one there knew Markopolos had an assisting team in the field. But Markopolos has proof that the SEC was culpable, too, and says publicly that he has tremendous anger at the agency and sadness for the victims. He says that there were SEC lawyers who were “in bed with Madoff ” and helped destroy lives.
“Madoff paid people to look the other way,” says Markopolos and reminds us that there is a federal report scheduled to come out by the end of the year. He emphasizes that unless there is a cover-up, “the SEC will cease to exist…”
Posted by Jesse at 11:01 PM
You have to listen to the interview link in the article with Harry Markopolos. He talks about how corrupt the Federal Reserve is.
That is the best interview I’ve ever heard on our current situation. Harry Markopolos is the man!
Thanks Xray, that was a great interview. To bad most will never hear it. Where is 60 minutes anymore? I don’t think anyone trusts that show after it was shown they sold out to the tobacco companies. And the pathetic interview with Bernanke? We need some hero’s and this Harry is one.