Thu, February 05, 2009
Harry Markopolos said he feared for his family's safety after he blew the whistle against alleged swindler, Bernard Madoff.
He blasted the Securities and Exchange Commission, saying regulators turned a deaf ear to his persistent demands over nine years that Madoff be investigated. Fred Katayama reports.
SCRIPT:
The man who tried to blow the whistle on alleged swindler Bernard Madoff said he once feared for his family's safety.
Harry Markopolos used to compete against Madoff when he worked at a money management firm.
He told the House Financial Services subcommittee that the Securities and Exchange Commission's inaction made him anxious.
(SOUNDBITE)(English) Harry Markopolos, Madoff whistleblower, saying:
"I had to remain secret. We feared for our health and safety. The government should have no fear. But it seems all they did have was fear of Mr. Madoff and fear of the big cases."
He blasted the SEC, saying regulators turned a deaf ear to his persistent demands over nine years that Madoff be investigated. The SEC failed to detect the alleged 50 billion dollar fraud, which Markopolos said was not a one-man job. He suggested that the SEC should boost pay and incentives to attract better people and hammer out more laws to catch future fraudsters.
(SOUNDBITE)(English) Harry Markopolos, Madoff whistleblower, saying:
"Right now, the SEC staff consists of 3500 chickens. We need to put some foxes in there. We need to give them compensation. We need to give them incentives. We need to get the right people."
The SEC's enforcement chief said the agency is considering changing how often it examines investment advisors. It may have more work to do.
