Deep down in my cold little heart I find less than a smidgen of sympathy for the Miami elites who Bernie Ponzi Madoff ripped off for billions of “hard earned,” or, even harder, inherited cash. These were for the most part moonbat liberals from Planet Pampered. Welcome to reality – ever eat EasyMac?
But there is a hero in this story, one guy who makes it all worth while. His name is Harry Markopolos, an American hero. The Wall Street Journal covered his story on Dec. 18, front page. The paper is worth $2.00 a pop.
Harry Markopolos spent nine years trying to persuade the Securities and Exchange Commission that Bernie Ponzi Madoff was running a Ponzi scheme.
AND NOW HE HAS PROVEN SOMETHING!
Harry Markopolos has proven beyond a shadow of doubt that the SEC is commission of omission, a useless, expensive, money wasting machine.
In the year 2000, Harry Markopolos, after spending endless hours trying to achieve on paper the annual 10% returns Madoff was getting, even enlisting the help of expert mathematicians, finally went to the authorities. The mighty SEC.
First up is one Edward Manion of the Boston SEC Office. Markopolos showed the SEC how it was impossible to achieve the steady results Madoff was getting with the existing stock market data. You would think this might sound an alarm with regulators if you didn’t know how government works.
A year went by and SEC investigator Edward Manion dropped the ball, picked it up and slipped a lateral to the New York office of the SEC where Bernie Ponzi Madoff ran his scheme. I would guess he had friends in high places there as well.
Markopolos had to re-submit all his info to NY but this time backed it up with charts, graphs, and even more specific research. He also pointed out to the New York office that $12 BILLION dollars might be involved. It did not matter because there seems to be a wall of indifference between Boston and New York SEC investigators. So the scheme grabbed more investors and grew.
Markopolos started his own investigative business and kept up the pressure on Madoff.
In 2005, a Boston SEC investigator called Markopolos and gave him a name in the New York SEC office one, Meaghan Cheung. Markopolos contacted her. That went nowhere for several more years even with more data and the addition of an interesting fact that Madoff would not let some Arab investors use a respected accounting firm to examine his books before they bought into his hedge fund. (So the Arabs were smart enough not to trust Madoff?)
Early in 2008 Markopolos tried once again through SEC investigator Jonathan Sokobin to persuade the SEC that Madoff was running a Ponzi scheme but his efforts were ignored as far as he knew. Markopolos emails the SEC through Sokobin that he had evidence of a Wall Street investor who cashed out of the Madoff scheme only to find the supposed investments made on his behalf never occurred.
Then all of a sudden, on December 11, 2008 Madoff was arrested. Markopolos found out from a friend who saw it on the news. (Did I mention there is a reward for information like Markopolos’s?)
This astronomical, historical, swindle of private (SSI will be bigger) investors occurred right under the nose of the Securities and Exchange Commission, an organization set up to prevent just such a thing.
And in the world of government you will find this sad fact; that from the lowest government body to the highest, they all have one thing in common, once you establish a government program or commission it first and foremost circles the wagons to protect itself from outside interests.
Unfortunately, whistleblowers, taxpayers, voters, and citizens, are almost always perceived to be outsiders by government employees.
One might as well be talking in an African tribal click language as to bother talking to a bureaucrat. They sometimes look at you when you are addressing them, often not. But inside that head of theirs is one single thought, and this is it: How can I make this guy go away so I can get on with my job.
The SEC does a disservice to investors in that people THINK it is looking out for them. To believe that a bureaucrat will look out for you is akin to believing he will look both ways for you the next time you cross a busy street, or maybe he will let you get your picture taken with his unicorn.
Another lesson learned.